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Preferred stock is sometimes treated like a debt security because: a) preferred dividends are deductible from...

Preferred stock is sometimes treated like a debt security because:

a) preferred dividends are deductible from taxable income just like interest payments on bonds.

b)preferred stock holders receive a residual value and not a stated value.

c)preferred dividend payments are similar to bond interest payments and are fixed in nature regardless of the firm’s earnings.

d)legally preferred stock is a debt security.

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preferred stock is sometimes treated like a debt security because:

c) preferred dividend payments are similar to bond interest payments and are fixed in nature regardless of the firm’s earnings.

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