Match each of the following preferred stock features with its description.Preferred Stock                       Features Description 1. Convertible             a. Prior unpaid dividends receive priority. 2. Redeemable           b. Shares can be sold at a predetermined price. 3. Cumulative            c. Shares can be exchanged for common stock.

The par value of a share of common stock…… Select one: a. is stated in the charter. b. is determined by the stock market. c. changes every time stock is sold. d. must be recorded as a journal entry.

Match each description with the characteristic of preferred stock that it best describes. A. Cumulative B. Noncumulative C. Nonparticipating D. Participating 1. Receives current and all past dividends before common stockholders receive any dividends. 2. Receives dividends exceeding the stated rate under certain conditions. 3. Not entitled to receive dividends in excess of the stated rate. 4. Loses any dividends that are not declared in the current year.