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au a cooperative O a franchise Question 12 (2 points) Which of the following statements is true of preferred stockholders? Th
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Answer #1

The following statement is true of preferred stockholders:

They have a claim to profits before other stockholders do.

Profits are distributed to the preferred stockholders' before any distribution is made the common stockholders. Similarly, at the time of liquidation, first the preferred stockholders' capital is return and then the common stockholders' capital is return.

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