Multiple Choice
Which of the following is not true about preferred stock?
A) 70% of dividends are nontaxable to other corporations which hold preferred stock.
B) The after-tax cost is higher than debt with the same yield.
C) Dividends are legal obligations of the firm.
D) Preferred stocks are often cumulative in respect to dividends.
Correct Answer:
Verified
Correct Answer:
Verified
Q14: The ex-rights date usually takes place after
Q29: To the individual recipient, preferred stock dividends
Q38: A common stockholder cannot force a company
Q60: Dutch Auction preferred stocks, unlike standard preferred
Q65: An increasing proportion of shares in the
Q67: Kuhns Corp. has 200,000 shares of preferred
Q67: Preferred stock generally carries a higher interest
Q68: Match the following with the items below:
Q74: The current market value of Markowitz Corp
Q92: Participating preferred stock gives its owners voting