Which of the following is not true?
a. Owners of preferred stock have a claim on the assets of a firm that is senior to the claim of common shareholders.
b. Preferred shares carry special rights.
c. The senior status and special rights may induce certain investors to purchase preferred shares of a firm, even though they would be unwilling to purchase common shares of the same firm.
d. The senior status and special rights decrease the risks of preferred shareholders relative to common shareholders.
e. Jurisdictional laws dictate the rights and obligations of the issuing firm and of the investor in the preferred shares.
E
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Extraordinary gains and losses arise from events that have all the following characteristics except:
a. They are unusual given the nature of the firm's activity. b. They are nonrecurring. c. They are material in amount. d. They result from terminated involvement in a line of business.
Holly Lane is an accountant with Mildred & Lane Co and she has recently been asked to visit Maine Manufacturers to survey their financial records, assess their compliance with federal and state laws, and provide an opinion reflecting the state of the
company's financial records. Holly's assessment of the financial records of Maine Manufacturers is called a(n) ________. A) probate B) audit C) arraignment D) easement
Patent rights are considered to be personal property
a. True b. False Indicate whether the statement is true or false
Dollar General and Dollar Tree are considered
A. department stores. B. superstores. C. independent retailers. D. convenience stores. E. discount stores.