Preferred stockholders receive: in financial a) Fixed interestb) Variable interestc) Fixed dividend before common shareholdersd) Dividends only if profits are highneed
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Preferred stockholders receive: in financial
a) Fixed interest
b) Variable interest
c) Fixed dividend before common shareholders
d) Dividends only if profits are high
need
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Solved in 2 steps
- Which type of stock pays a fixed dividend? A. common B. preferred C. debenture D. convertibleWhich of the following is a key characteristic of preferred stock?a) Fixed dividend paymentsb) Variable dividend paymentsc) Voting rights in the companyd) Payment is not guaranteedhelpWhich of the following classes of stockholders receives the highest preference as to the right to receive dividends? Select one: a. No-par b. Preferred c. Common d. Cumulative preferred
- Which of the following is a characteristic of a company's common stock?a) Fixed dividend paymentsb) Fixed voting rightsc) Variable dividend paymentsd) Guaranteed returnshelpWhich of the following is a key characteristic of preferred stock?a) Fixed dividend paymentsb) Variable dividend paymentsc) Voting rights in the companyd) Payment is not guaranteedWhich of the following is a characteristic of a company's common stock?a) Fixed dividend paymentsb) Fixed voting rightsc) Variable dividend paymentsd) Guaranteed returns
- 4. Define the following terms. Signaling hypothesis; clientele effect Residual distribution model; extra dividend Declaration date; holder-of-record date; ex-dividend date; payment date Dividend reinvestment plan (DRIP) Stock split; stock dividend; stock repurchaseCumulative preferred stock Orequires dividends in arrears to be paid before the firm can pay dividends on common. has a right to vote cumulatively. has a claim to dividends before bonds. Chas a higher required return than common stack.Which of the following decreases total equity? A. A stock split B. Recording Revenue C. The purchase of Treasury Stock D. Issuance of Convertible preferred stock
- When a limited liability company is formed, a. the partnership activities are limited 9 b. all partners have limited liability C. some of the partners have limited liability O d. none of the partners has limited liabilityCumulative preferred stock Orequires dividends in arrears to be paid before the firm can pay dividends on common. O has a right to vote cumulatively, has a claim to dividends before bonds. has a higher required return than common stock.Define each of the following terms:a. Optimal distribution policyb. Dividend irrelevance theory; bird-in-the-hand theory; tax effect theoryc. Signaling hypothesis; clientele effectd. Residual distribution model; extra dividende. Declaration date; holder-of-record date; ex-dividend date; payment datef. Dividend reinvestment plan (DRIP)g. Stock split; stock dividend; stock repurchase
