Preferred Stock Typically Has a Par Value, and the Dividend

question 20

True/False

Preferred stock typically has a par value, and the dividend is often stated as a percentage of par.The par value is also important in the event of liquidation, as the preferred stockholders are generally entitled to receive the par value before anything is given to the common stockholders.

---

Definitions:

Strecker Synthesis

A chemical reaction for synthesizing amino acids by reacting an aldehyde with ammonium chloride and potassium cyanide, followed by hydrolysis.

Racemic Alanine

A mixture of equal parts of the D- and L-enantiomers of alanine, making it optically inactive due to the internal compensation of optical activity.

Acetaldehyde

A volatile, colorless, and flammable liquid organic compound, used as an intermediate in the synthesis of various chemicals.

3-Methylthiopropanal

An organic compound characterized by a three-carbon aldehyde functional group attached to a sulfur atom-containing methyl group.