All of the Following Are Given as Possible Motivations for a Corporation

question 75

Multiple Choice

All of the following are given as possible motivations for a corporation to issue preferred shares except

• A)Raise capital without sacrificing voting control.
• B)Increase the return of common shareholders.
• C)Appeal to investors who do not want to invest in common shares.
• D)If the preferred shares are convertible,they are more attractive to potential investors.
• E)Preferred dividends are paid before common dividends.

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Definitions:

Gallons

A unit of volume measurement used primarily in the United States to measure liquids.

Miles

A unit of length equal to 5,280 feet or approximately 1,609 meters, used primarily in the United States and the UK for measuring distances.

Gallon

A unit of volume for liquid measure equal to four quarts, used in both the US customary and British imperial systems.

Gasoline

A volatile, flammable liquid derived from petroleum, commonly used as fuel for engines.