Homework Answers
Option '2' is Not True
Owners of Preferred stock are not guaranteed dividend payments by the firm.
while the other statements are True about Preferred stock. Preferred stock represents ownership in the firm. Preferred stock dividends are fixed financial amounts paid regularly by the firm just like bond coupon payments and are paid prior to the common stock holders. preferred stock holders have limited voting privileges relative to common stock owners.
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Question 12 2pto Which one of the following statements is NOT true about preferred stock? Preferred...
Which one of the following statements about the preferred stock is TRUE? Unlike dividends paid on...
Which one of the following statements about the preferred stock is TRUE? Unlike dividends paid on common stock, dividends paid on preferred stock are a tax-deductible expense Preferred stock is a hybrid product. It shares a lot of similarity with debt, but the tax treatment is different Non-cumulative dividends on preferred stock payable during the next twelve months are considered to be a corporate liability There is no significant difference in the voting rights granted to preferred and common shareholders
Which of the following is NOT a widely-known stock market index? The Dow Jones Industrial Average...
Which of the following is NOT a widely-known stock market index? The Dow Jones Industrial Average The New York Stock Exchange Index The Standard and Poor's 500 Index The OTQ Composite Index Owners of preferred stock: have limited voting rights. usually receive fixed dividend payments. All of the above statements are true. are given priority treatment over common stock with respect to dividends payments, and the claims against the firm' s assets in the event of bankruptcy or liquidation.
Preferred stock is sometimes treated like a debt security because: a) preferred dividends are deductible from...
Preferred stock is sometimes treated like a debt security because: a) preferred dividends are deductible from taxable income just like interest payments on bonds. b)preferred stock holders receive a residual value and not a stated value. c)preferred dividend payments are similar to bond interest payments and are fixed in nature regardless of the firm’s earnings. d)legally preferred stock is a debt security.
22. Which of the following statements concerning preferred stocks is true? a. Preferred stockholders have anrior...
22. Which of the following statements concerning preferred stocks is true? a. Preferred stockholders have anrior claim on the income and assets of the firm as compared to the claims of lenders. b. Preferred stock dividends per share are normally increased as the earnings of the firm increase. c. Preferred dividends per share are usually not cut or suspended unless the firm is faced with serious financial problems. d. The par value of a stock is always the same as...
Which of the following is true of preferred stock? Preferred stockholders are guaranteed that they will...
Which of the following is true of preferred stock? Preferred stockholders are guaranteed that they will not take a loss on their investment. Preferred stockholders may sell their shares for a price higher than that of common stock. Preferred stockholders have higher voting rights than common stockholders. Preferred stockholders generally receive a fixed amount of dividends before common stockholders do.
Which of the following statements concerning preferred stocks is true? The par value of a stock...
Which of the following statements concerning preferred stocks is true? The par value of a stock is always the same as the initial selling price. Preferred stock dividends per share are normally increased as the earnings of the firm increase. Preferred stockholders have a prior claim on the income and assets of the firm as compared to the claims of lenders. Preferred dividends per share are usually not cut or suspended unless the firm is faced with serious financial problems.
Which of the following statements concerning preferred stocks is true? The par value of a stock...
Which of the following statements concerning preferred stocks is true? The par value of a stock is always the same as the initial selling price. Preferred stock dividends per share are normally increased as the earnings of the firm increase. Preferred stockholders have a prior claim on the income and assets of the firm as compared to the claims of lenders. Preferred dividends per share are usually not cut or suspended unless the firm is faced with serious financial problems.
8. Which of the following statements is true? a. Preferred stock has a stated maturity date....
8. Which of the following statements is true? a. Preferred stock has a stated maturity date. b. The company repays the par value for preferred stock at maturity, like bonds. c. A company bases a preferred stock's cash dividend due each year on the stated dividend rate times the stock's market value. d. Some preferred stocks are cumulative in dividends, meaning that if a company skips a cash dividend, it must pay it at some point in the future.
Question 16 (3 points) Which of the followings about bonds is not true? Bonds holders get...
Question 16 (3 points) Which of the followings about bonds is not true? Bonds holders get voting rights within the corporation. Yield-to-maturity is the rate of return earned on a bond held untl maturity. A bond is a financial instrument in which a bond issuer agrees to pay principal and interest payments to the bond holders. Coupon rate is the stated interest rate at which the issuer pays interest payments.
5) Which of the following statements concerning prererred stocK IS MUST correct! A) Preferred stock is...
5) Which of the following statements concerning prererred stocK IS MUST correct! A) Preferred stock is valued the same as zero coupon bonds because the cash flow patterns are similar. B) If a corporation issues 4% preferred stock with a par value of $100, the dividend will increase by 4% per year C) Preferred stock dividends are typically the same each year, allowing a preferred stock to be valued as a perpetuity of the lock your required to D) Preferred...
Which of the following is NOT a widely-known stock market index? The Dow Jones Industrial Average The New York Stock Exchange Index The Standard and Poor's 500 Index The OTQ Composite Index Owners of preferred stock: have limited voting rights. usually receive fixed dividend payments. All of the above statements are true. are given priority treatment over common stock with respect to dividends payments, and the claims against the firm' s assets in the event of bankruptcy or liquidation.
22. Which of the following statements concerning preferred stocks is true? a. Preferred stockholders have anrior claim on the income and assets of the firm as compared to the claims of lenders. b. Preferred stock dividends per share are normally increased as the earnings of the firm increase. c. Preferred dividends per share are usually not cut or suspended unless the firm is faced with serious financial problems. d. The par value of a stock is always the same as...
8. Which of the following statements is true? a. Preferred stock has a stated maturity date. b. The company repays the par value for preferred stock at maturity, like bonds. c. A company bases a preferred stock's cash dividend due each year on the stated dividend rate times the stock's market value. d. Some preferred stocks are cumulative in dividends, meaning that if a company skips a cash dividend, it must pay it at some point in the future.
Question 16 (3 points) Which of the followings about bonds is not true? Bonds holders get voting rights within the corporation. Yield-to-maturity is the rate of return earned on a bond held untl maturity. A bond is a financial instrument in which a bond issuer agrees to pay principal and interest payments to the bond holders. Coupon rate is the stated interest rate at which the issuer pays interest payments.
5) Which of the following statements concerning prererred stocK IS MUST correct! A) Preferred stock is valued the same as zero coupon bonds because the cash flow patterns are similar. B) If a corporation issues 4% preferred stock with a par value of $100, the dividend will increase by 4% per year C) Preferred stock dividends are typically the same each year, allowing a preferred stock to be valued as a perpetuity of the lock your required to D) Preferred...
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