Preferred stock is less risky for investors than is common stock because:

Preferred stock is less risky for investors than is common stock because:
A . Common stock pays dividends as a stated percentage of face value.
B . Common stock has priority over preferred stock with regard to earnings and assets.
C . Preferred dividends are usually cumulative.
D . Preferred stock with no conversion feature has a higher dividend yield than does convertible preferred stock.

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Answer: C