Question

Which one of the following is a characteristic of equity as opposed to debt? Voting rights are typically attached. There is a fixed maturity date. There is a legal contract. There is a fixed payment schedule. Question 15 2 pts If preferred stock is cumulative, then preferred dividends are a percentage of corporate profits. dividends in arrears must be paid before common shareholders receive dividends. dividends are a percentage of the market value of the preferred stock. payment of dividends is legally guaranteed to shareholders each year.

Answer 1

Answers :

14) Voting Rights are Typically attached

Debt don't have the voting rights but Equity holders are having the voting rights.

15) Dividend in arrears must be paid before common shareholders receive dividend

Cumulative Preferred stokc is a type of preferred stock which provide the all arrears on dividend to the preferred stock holders before the distribution of dividend to common stock stockholders