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Preferred Stock

Which of the following is NOT a disadvantage of preferred stock ______

it is often considered quasi-debt due to fixed payment obligation,
it has less restrictive covenants than debt,
it gives the holder voting rights that permit selection of the firm's directors,
or its holders have priority over common stockholders in the liquidation of assets

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Answer: it has less restrictive covenants than debt,
Anything that does ...

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Answer to multiple choice question on Preferred Stock.

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