All of the following statements are true about preferred stock except:
a. preferred dividends are paid before common
b. in most cases dividends are paid semi-annually
c. corporations must pay preferred dividends
d. preferred shareholders are paid before common shareholders upon liquidation of a corporation

The answer is: B) In most cases dividends are paid semi-annually

Explanation:

Preferred dividends:

In most cases they are paid on a monthly or quarterly basis. Semi-annual payments occur once every 6 months (or twice a year) and for preferred dividends that is usually considered a long time.

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