Preferred dividends may be paid as:
I Cash
II Stock
III Stock of another company
A. I only
B. II only
C. I or II
D. I, II, III
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Answers
Answer: C. I or II. Preferred dividends can be paid out as cash dividends or as a stock dividend, typically in the form of additional shares of the issuing company's stock. Dividends cannot be paid as stock of another company.
