. With regard to preferred shares, a.their issuance provides no flexibility to the issuing company because their terms always require mandatory dividend payments. b.their shareholders may have the right to participate, along with common shareholders, if a dividend is declared. c.no dividends are expected by the shareholders. d.there is a legal requirement for a corporation to declare a dividend on preferred shares.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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7. With regard to preferred shares,

a.their issuance provides no flexibility to the issuing company because their terms always require mandatory dividend payments.
b.their shareholders may have the right to participate, along with common shareholders, if a dividend is declared.
c.no dividends are expected by the shareholders.
d.there is a legal requirement for a corporation to declare a dividend on preferred shares.
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