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A major disadvantage of preferred stock is:

Looking for the answer to the question below related to Financial Management?

A major disadvantage of preferred stock is:

 Options:

A. common stock dividends have a higher order of precedence
B. dividends are not tax-deductible
C. there is no secondary market for preferred stock
D. the preferred dividend may vary greatly year to year

 

The Correct Answer Is:

  • B. dividends are not tax-deductible

 

Conclusion

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