How is preferred stock similar to bonds?
a. Investors can sue the firm if preferred dividend payments are not paid (much like bondholders can sue for non-payment of interest payments).
b. Dividend payments to preferred shareholders (much like bond interest payments to bondholders) are tax deductible.
c. Preferred stockholders receive a dividend payment (much like interest payments to bondholders) that is usually fixed.
d. Preferred stock is not like bonds in any way.