John Buys a Particular Issue of Stock That Carries a Stated

question 12

Multiple Choice

John buys a particular issue of stock that carries a stated dividend rate of 8 percent per year; that if this dividend is not paid during a particular year,it will not be paid in a subsequent year before common stock dividends are paid; that John can exchange the stock for common stock in the future,at a specified exchange price; and that if the corporation wants to,it may buy the stock back from John at $50 per share.This stock is best described as:

• A) noncumulative,convertible,redeemable preferred
• B) cumulative,convertible,participating preferred
• C) noncumulative,redeemable,participating preferred
• D) cumulative,redeemable,participating preferred
• E) common

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Definitions:

Internal Attribution

The process of ascribing the cause of behaviors to internal characteristics of the individual rather than to external factors.

Stable Attribution

An individual's tendency to believe that a person's behavior or outcome is due to traits or situations that are consistent over time.

Unstable Attribution

A cognitive process where individuals inconsistently or unpredictably attribute causes or reasons to their own or others' behaviors.

Outgroup

A social group to which an individual does not identify or belong, often seen as fundamentally different or apart from one's ingroup.