Question

Preferred stock is a form of debt financing because the dividend must be paid before dividends can be paid to the equity owners.

Answer 1

Answer:

False

Explanation:

Preference stock is a type of ownership of equity whereas the bond is the form of debt. The preference stock is the stock in which the dividend is fixed and to be paid before paying the common shareholders.

it includes the features like no voting rights, fixed dividend

Therefore the given statement is false