Preferred stock is a hybrid-a cross between a common stock and a bond-in the sense that it pays dividends that normally increase annually (like a stock), but its payments are contractually guaranteed (like interest on a bond).
Answer the following statement true (T) or false (F)
False
Rationale: Preferred dividends don't normally grow, and they are not guaranteed.
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A limitation of the internal rate of return method is that it:
A. Does not consider the time value of money. B. Lacks ability to compare dissimilar projects. C. Measures results in years. D. Ignores varying risks over the life of a project. E. Measures net income rather than cash flows.
Management accounting exists primarily for the benefit of people outside the company
Indicate whether the statement is true or false
At the end of the current year, Leer Company reported total liabilities of $315,000 and total equity of $115,000. The company's debt ratio on the last year-end was:
A. 3.74%. B. 274%. C. 36.5%. D. $430,000 E. 73.3%.
A Risk Manager needs more information than just the loss frequency and loss severity to assess the risk exposure of their firm
Indicate whether the statement is true or false