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Arrearage means that a cumulative preferred stock's dividend is not being paid. ()

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Preferred stock dividends are not a legal obligation of the firm. ()

Preferred stock dividends are usually fixed. ()

One measure of the safety of a preferred stock's dividend is the earnings-per-preferred share. ()

Debt instruments subject their owners to risk from ______ (1)loss of purchasing power (2)higher credit ratings (3) default

A. (1) and (2)
B. (1) and (3)
C. (2) and (3)
D. (1), (2), and (3)

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