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September 1, 2015

Homework Help: Finance

Posted by Jean on Wednesday, March 28, 2007 at 5:53pm.

Preferred stock differs from common stock in that preferred stock:

Preferred stock always receives a stated interest payment if the company is solvent, but they are subject to being called. Bondholders have first call on payment. Common stock dividends are at the discretiuon of management, and may be zero.

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