1. Which of the following is true of (ordinary) preferred shares? The larger a company’s profit, the higher the dividend paid on preferred stock. You should expect a higher return from a company’s...

1. Which of the following is true of (ordinary) preferred shares?


The larger a company’s profit, the higher the dividend paid on preferred stock.


You should expect a higher return from a company’s preferred than from its common shares


Preferred shareholders have priority in payments from a company in bankruptcy relative to the company’s bank and bond creditors.


None of these