Which of the following statements about preferred stock is wrong?
A.
Preferred stock is like debt in that there is a contractually specified fixed payment
B.
The Preferred dividends must be made before the holders of common stock can be paid anything
C.
Failure to pay preferred dividends will trigger a default
D.
The holders of preferred stock usually do not get to share the residual value of the firm’s assets with the holders of the common stock