Which of the Following Typically Applies to Preferred Stock but NOT

question 55

Multiple Choice

Which of the following typically applies to preferred stock but NOT to common stock?

• A) Par value.
• B) Dividend yield.
• C) Cumulative dividends.
• D) It is legally considered equity.
• E) The dividends are a tax-deductible expense.

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Definitions:

DC

Direct Current, a form of electrical current that flows in one direction, commonly used in batteries and electronic devices.

Output

Information sent from the processor to a connected device via some interface. The information could be in the form of control data that will signal some device such as a motor to switch on or off or to vary the speed of a drive.

Node

A point in a network or diagram at which lines or pathways intersect or branch.