Which of the following statements is CORRECT?
A. The preferred stock of a given firm is generally less risky to investors than the same firm's common stock.
B. Corporations cannot buy the preferred stocks of other corporations.
C. Preferred dividends are not generally cumulative.
D. A big advantage of preferred stock is that dividends on preferred stocks are tax deductible by the issuing corporation.
E. Preferred stockholders have a priority over bondholders in the event of bankruptcy to the income, but not to the proceeds in a liquidation.
Answer: A
You might also like to view...
On January 1, Vermont Corporation had 40,000 shares of $10 par value common stock issued and outstanding. All 40,000 shares had been issued in a prior period at $20.00 per share. On February 1, Vermont purchased 3,750 shares of treasury stock for $24 per share and later sold the treasury shares for $21 per share on March 1. The journal entry to record the purchase of the treasury shares on
February 1, would include a a. credit to Treasury Stock for $90,000 b. debit to Treasury Stock for $90,000 c. debit to a loss account for $112,500 d. credit to a gain account for $112,500
________ looks at specific products, territories, and so forth that failed to produce expected sales
A) Microsales analysis B) Sales variance analysis C) Expense-to-sales analysis D) Full costing analysis E) Financial analysis
________ is the level of consistency of a research measurement
A) Flexibility B) Validity C) Responsiveness D) Reliability E) Representativeness
The first step of the minimal spanning tree solution method is to:
A) select any starting node. B) select the node closest to the starting node to join the spanning tree. C) select the closest node not presently in the spanning tree. D) arbitrarily select any path in the network from origin to destination.