Why Do Companies Tend to Issue Preferred Stock Less Then

question 84

Multiple Choice

Why do companies tend to issue preferred stock less then commons stock and bonds?

• A) Flotation cost of preferred stock is low compared to bonds.
• B) Preferred dividends are considered regular (fixed)obligations but are not tax-deductible.
• C) Preferred shareholders are entitled to receive stipulated dividends before common shareholders.
• D) Preferred stock typically has cumulative dividends.

Describe the mechanisms and outcomes of trade policies such as tariffs, quotas, and free trade agreements.

Identify and explain the redistribution effects of trade policies on consumers, producers, and the government.

Understand how global trade organizations and agreements, such as the WTO and NAFTA, aim to reduce trade restrictions and their expected impacts.

Analyze the effects of specific tariffs and quotas on market equilibrium, including the calculation of government revenue and welfare losses.

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Definitions:

Amazon Business

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