Preferred stock with a feature allowing preferred stockholders to share with common shareholders in any dividends in excess of the percent or dollar amount stated on the preferred stock is called:
A. Cumulative preferred stock.
B. Participating preferred stock.
C. Preferential preferred stock.
D. Callable preferred stock.
E. Convertible preferred stock.
Answer: B
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As a starting point, firms that comply with Western cost-accounting principles typically use the pricing method known as:
A) price bundling. B) target costing. C) cost-plus pricing. D) export price costing. E) full absorption cost.
Many companies use MACRS (Modified Accelerated Cost Recovery System) depreciation for
a. financial reporting purposes and a different method for tax purposes. b. financial reporting purposes because depreciation is not allowed for tax purposes. c. tax purposes because it results in a larger net income in the early years of a plant asset's life d. tax purposes because of a desire to report higher expenses in early years in order to pay lower taxes.
What is the goal of websites like Glassdoor and Just Capital?
a. providing guidelines for ethical behavior that companies can follow b. granting tax breaks to companies with good ethical reputations c. increasing LGBT representation in companies d. forcing transparency on the ethics of many companies
Using lower cost borrowed funds and earning a higher rate of return on those funds than their cost
a. increases the return to the common shareholders. b. is a phenomenon called financial leverage. c. requires the common shareholders to take on more risk in their investment. d. all of the above e. none of the above