Preferred Stock with a Feature Allowing Preferred Stockholders to Share

question 175

Multiple Choice

Preferred stock with a feature allowing preferred stockholders to share with common shareholders in any dividends in excess of the percent or dollar amount stated on the preferred stock is called:

• A)Cumulative preferred stock.
• B)Callable preferred stock.
• C)Participating preferred stock.
• D)Convertible preferred stock.
• E)Preferential preferred stock.

---

Definitions:

Proportion

A statistical measure that reflects the fraction or percentage of the total number of items or cases that fall within a certain category or exhibit a particular attribute.

Central Limit Theorem

A statistical theory that states that given a sufficiently large sample size from a population with a finite level of variance, the mean of all samples from the same population will be approximately equal to the mean of the population.

Sample Mean

The average value of a sample subset of a larger population, used as an estimate of the population mean.