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With regard to preferred stock, a. no dividends are expected by the stockholders b. its stockholders may have the right to participate, along with common

With regard to preferred stock,

a. no dividends are expected by the stockholders

b. its stockholders may have the right to participate, along with common stockholders, if an extra dividend is declared.

c. there is a legal requirement for a corporation to declare a dividend on preferred stock.

d. its issuance provides no flexibility to the issuing company because its terms always require mandatory dividend payments.

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