Stockholders prefer to invest in preferred stock because
a. preferred stock confers preferred voting rights.
b. preferred stock can always be converted to common stock if they desire.
c. the dividends are generally increased each year.
d. the dividends are paid on preferred stock before they are paid on common stock.
d
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Cash flows from financing activities, as part of the statement of cash flows, would include any payments fordividends
a. True b. False Indicate whether the statement is true or false
A corporation is owned 70% by Jones and 30% by Smith. Jones owns 70 shares with a cost of $100 each. Smith owns 30 shares with a cost of $100 per share. The company redeems 20 shares from Jones at a redemption price of $400 per share. No stock is redeemed from Smith. This is not a redemption to pay death taxes, and it is not a partial liquidation. What is the tax impact on Jones?
A. dividend income of $6,000 B. capital gain of $8,000 C. dividend income of $8,000 D. capital gain of $6,000
Use this information to answer the following question. These facts concern the long-term stock investments of Alpha Corporation: June 1, 2009 Paid cash for the following long-term investment: 5,000 shares Carey Corporation common stock (representing 5 percent of outstanding stock) at $40 per share; 3,000 shares Burns Corporation common stock (representing 3 percent of outstanding stock) at $24
per share. Dec. 31, 2009 Quoted market prices at year end: Carey common stock, $35; Burns common stock, $27. April 1, 2010 A change in policy required the sale of 1,000 shares of Carey Corporation common stock at $38. July 1, 2010 Received a cash dividend from Burns Corporation equal to $.30 per share. Dec. 31, 2010 Quoted market prices at year end: Carey common stock, $39; Burns common stock, $22. The entry to adjust the Allowance to Adjust Long-Term Investments to Market in 2010 is: a. Unrealized Loss on Long-Term Investments 6,000 Allowance to Adjust Long Term Investment to Market 6,000 b. Allowance to Adjust Long Term Investment to Market 10,000 Unrealized Loss on Long-Term Investments 10,000 c. Unrealized Loss on Long-Term Investments 10,000 Allowance to Adjust Long Term Investment to Market 10,000 d. Allowance to Adjust Long Term Investment to Market 6,000 Unrealized Loss on Long-Term Investments 6,000
Jargon has two meanings. One meaning is using familiar words ______________
a. incorrectly b. to describe familiar things c. in unfamiliar ways d. too often