Dumps4download IIA-CIA-Part3 Exam Question 2
Preferred stock is less risky for investors than is common stock because:
A. Common stock pays dividends as a stated percentage of face value.
B. Common stock has priority over preferred stock with regard to earnings and assets.
C. Preferred stock with no conversion feature has a higher dividend yield than does convertible preferred stock.
D. Preferred dividends are usually cumulative. Correct Answer: D