Question

Which of the following is true of common stock?

a. Common stock is often referred to as a hybrid security.

b. Common stock often contains some of the same characteristics as bonds.

c. Most common stock traditionally pays a constant income called interest.

d. A firm can be forced into bankruptcy if it misses common stock dividend payments.

e. Dividends must be paid on preferred stock before they can be paid on common stock.

Answer

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