Question

Preferred stock can be callable.Preferred stock generally has a stated liquidation value of $1,000 per share.Dividend payments to preferred shareholders are tax-deductible expenses for the issuing firm.Preferred dividends are generally variable in amount.Preferred shareholders receive preferential treatment over bondholders in a liquidation.

Answer 1

Preferred stock can be callable

Step-by-step explanation:

The preferred stock can be purchase by the firm thus, callable.

Preferred stock generally has a stated liquidation value of $1,000 per share

FALSE: There is no fixed value for the preferred stock

Dividend payments to preferred shareholders are tax-deductible expenses for the issuing firm

FALSE: the dividends aren't deductible

Preferred dividends are generally variable in amount

FALSE: preferred stock has a fixed percentage return that can be accumulative.

Preferred shareholders receive preferential treatment over bondholders in a liquidation.

FALSE: they don't