Unlike a dividend on common equity, the dividend on preferred stock is:

Question

Accepted Answer

A. Fixed and known

1. Common dividends can change.
2. This one is set in advance.
3. It is fixed and known.
_Source: OpenStax Principles of Finance 2e, Chapter 17, How Firms Raise Capital._

Answer

Paid in shares

Answer

Left optional

Answer

Kept variable

Unlike a dividend on common equity, the dividend on preferred stock is:

Keep practising Cost of Capital