If a Company's Preferred Stock Is 7%, $1 Par Value

question 84

True/False

If a company's preferred stock is 7%, $1 par value, then the dividend on the stock is $.07 per share.

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Definitions:

Corporate Governance

The system of rules, practices, and processes through which a company is directed and controlled, focusing on balancing the interests of its various stakeholders.

American Law

The legal system of the United States, including its statutes, regulations, case law, and constitutional provisions.

Insider Trading

The unlawful activity where individuals trade on the stock market for personal gain using private, sensitive information.

Business Judgment Rule

A legal principle that protects the decisions of a corporate board of directors from judicial review as long as those decisions are made within their authority and with a reasonable belief that they were in the best interests of the company.