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Question(s) / Instruction(s):

A dividend preference for preferred stock means that:

a)            Dividends must be declared on preferred stock.

b)            Preferred stockholders prefer dividends more than common stockholders.

c)            Dividends are paid quarterly.

d)            Preferred shareholders are guaranteed dividends.

e)            Preferred stockholders are allocated their dividends before dividends are allocated to common shareholders.

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