Multiple Choice
Achieving an increased return on common stock by paying dividends on preferred stock at a rate that is less than the rate of return earned with the assets invested from the preferred stock issuance is called:
A) Premium on stock.
B) Capital gain.
C) Discount on stock.
D) Preemptive right.
E) Financial leverage.
Correct Answer:
Verified
Correct Answer:
Verified
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