The biggest advantage of common stockholders is that they have __________ which is not available with the preferred stockholders. Select one: A. None of the given options B. Voting Right C. Claim on Assets D. Dividend Righty
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- Which of the following is the reason that preferred dividends declared during the period are deducted from net income in calculating return on common stockholders’ equity? a. Preferred dividends are not paid from net income. b. Preferred dividends are not a part of stockholders’ equity. c. Preferred dividends are not paid until all common stockholders have received their dividends, so preferred dividends are not relevant in the formula and so must be taken out of the equation. d. Preferred dividends will reduce the amount of income available for distribution to common stockholders.which of the following statements is true? Select one: Investors sell a stock when required return is less than expected return and buy a stock when required return above expected return None of the answers are correct Investors buy a stock when it is under-valued and sell it when it is over-valued Investors sell a stock when it is under-valued and buy it when it is over-valued.Which of the following is not a very common feature of preferred stock? a. Voting rights b.The conversion feature c. Call feature d. Cumulative dividends
- Which of the following statements correctly describe characteristics of preference shares? Group of answer choices A. The required return on preference equity is expected to be less than the required return from ordinary equity. B. None of the other statements are correct C. A participating preference share participates in the interest payments paid to debtholders. D. Preference shares are called “hybrid” securities because they display characteristics of both short-term and long-term debt.Which of the following statements is not true about preferred stock? A.The rate of dividend is usually fixed B.Stockholders' usually have a preference as to dividends C. Stockholders always have a voting right D. Stockholders' usually have a preference as to assets upon liquidation of the corporationWhy is preferred stock referred to as a hybrid security? It is often said to combine the worst features of common stock and bonds. What is meant by this statement? How does a common stockholder receive two types of returns?
- Which of the following is not a characteristic that sets preferred stock apart from common stock? A. voting rights B. dividend payments C. transferability D. ownershipWhen purchasing shares is it preferrable to purchase in anticipation of appreciation or of dividends? Do certain investors have different needs?Question-based on, "Stockholders equity section". I have tried it but got it incorrect.
- Explain the different dividend preferences that may be attached to preferred stock. Why would preferred stock have these preferences over common stock? Does it mean that purchasing preferred stock is better than purchasing common stock?d) Would you buy or sell this share? Why? e) Explain the difference between common and preference stock holders f) Suppose the country Morphosis operates in experiences a severe drought. What type of risk is this to the stockholders?2. Which of the following is a characteristic of preferred stock?A. Give voting rights to its owner.B. It is like annuity.C. Investors cannot force the payment of the dividend.D. Dividends are tax-deductible for the firm as opposed to interest payment.