Which of the Following Statements Is Not Correct in Relation

question 6

Multiple Choice

Which of the following statements is not correct in relation to cumulative preference shares?

• A) Holders of cumulative preference shares are guaranteed a dividend every year.
• B) Undeclared cumulative preference share dividends accumulate, or carry forward, to future periods.
• C) The accumulated amount of any cumulative preference share dividend plus the current year's preference dividend must be paid before any dividend can be paid to ordinary shareholders.
• D) Cumulative preference share dividends that are not declared in the year they are due are called dividends in arrears.

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Definitions:

Intercept

In the context of linear regression, the intercept is the expected value of the dependent variable when all independent variables are equal to zero.

Predicted Income

An estimate of future financial earnings based on factors such as education, occupation, and economic trends.

Multivariate Regression

A statistical technique used to understand the relationship between one dependent variable and two or more independent variables.