In what ways are preferred shares like debt and in what ways are they like common equity?
What will be an ideal response?
Like debt preferred shares are paid prior to equity and expect to receive a predetermined payout that must be paid prior to common stock holders receiving any. Further, neither debt nor preferred stock have voting rights.
Like common stock, preferred dividends are paid after taxes and do not benefit the firm with a tax shield. Further, they do do not have recourse to bankruptcy f liquidation if preferred shares are not paid. and, if the preferred shares are participating, they may enjoy sharing in extra dividends with common stock.
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Indicate whether the statement is true or false
The theoretical model of authentic leadership presented in the text focuses on authentic leadership as a process. This is similar to ______.
A. the focus of Katz’s skills model B. the focus of Blake and Mouton’s behavioral model C. Burns’s definition of transactional leadership D. Northouse’s definition of leadership in the text
What should a company do to improve its accounts receivable turnover ratio?
A) Lower its selling prices. B) Increase its sales force. C) Give customers credit terms of 2/10, n/30 rather than 1/10, n/30. D) Reduce the number of employees working in the credit department.
Incorporators cannot become shareholders of the corporation they are associated with
Indicate whether the statement is true or false