What is an advantage to being a "preferred" stock holder?
A) Preferred stock holders always get to vote for the board of directors of the company.
B) Preferred stock holders receive a better coupon interest rate.
C) Preferred stock holders receive dividend payouts before common stock holders do.
D) Preferred stock holders never pay commissions on their stock trades.
E) There are no advantages to being a preferred stock holder.
Answer: C
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Scott was a member of the board of directors of Buffalo Corporation. Officers of Buffalo were considering the purchase of new equipment to produce a new product. The board of directors had not been consulted about the new venture, but Scott found out about the plan and objected to its implementation. He sought to inspect the corporate books and records to gain factual information supportive of his position. The officers refused his inspection request, asserting that Scott had no management function or power. Under these circumstances, Scott:
A. is barred from examination of the books and records of the corporation under the business judgment rule. B. is barred from examination of the books and records of the corporation under the doctrine of respondeat superior. C. has the right to inspect corporate books and records, as information regarding the corporation and its affairs is essential to perform his duties. D. has the right to inspect corporate books only if he is also a majority shareholder.
The breakeven point is the point at which
A) fixed costs equal variable costs. B) total revenues equal total costs. C) sales equal variable costs. D) fixed costs equal sales.
Which virtue protects against excess ______.
A. wisdom and knowledge B. courage C. temperance D. transcenence
Wall Inc. forecasts that it will have the free cash flows (in millions) shown below. Assume the firm has zero non-operating assets. If the weighted average cost of capital is 14% and the free cash flows are expected to continue growing at the same rate after Year 3 as from Year 2 to Year 3, what is the firm's total corporate value, in millions? Do not round intermediate calculations. Year 1 2 3 Free cash flow -$20.00 $48.00 $50.50 ?
A. $535.20 B. $553.65 C. $572.11 D. $549.04 E. $461.38