If a corporation issues cumulative, participating preferred stock, which of the following is true regarding the rights of the preferred stockholders?
A) They must forgo dividends for any periods when no dividends are declared.
B) They have the right to receive current-year dividends and all unpaid dividends from prior years.
C) They will receive a fixed dividend each year regardless of the amount of dividends declared.
D) They will have an option to convert their shares to common stock at a specified date.
B
You might also like to view...
Which of the following is most likely true about people's beliefs and values?
A) Belief in marriage is a secondary belief for most Americans. B) Secondary beliefs and values cannot be changed. C) Marketers have a high chance of changing core beliefs and values. D) Secondary beliefs are passed on from parents to children. E) Core beliefs and values have a high degree of persistence.
Held-to-maturity securities are valued on the balance sheet at cost adjusted for the effects of interest
Indicate whether the statement is true or false
Rhodes, a college student, wants to purchase a motorcycle on credit from Landier Motors. He does not have sufficient income or the credit history to justify the extension of credit to him alone
Rhodes asks his father to cosign a note to Landier Motors, which he does. What kind of liability does Rhodes's father come under? A) secondary liability B) primary liability C) fringe liability D) warranty liability
To improve communication and to compete more effectively, many of today's companies have ________
A) eliminated the grapevine B) restructured and reengineered themselves into smaller operating units and work teams C) discouraged free-flowing communication D) increased the number of levels in the communication chain