Preferred Shares Are Often Issued Instead of Debt

question 151

Multiple Choice

Preferred shares are often issued instead of debt

• A) to avoid paying dividends to the common shareholders.
• B) because a corporation's debt-to-equity ratio has become too high.
• C) to increase the market value of the shares.
• D) to decrease the market value of the shares.

---

Definitions:

Loneliness

A subjective feeling of isolation or being alone, regardless of the amount of social contact or presence of others, often accompanied by sadness or discomfort.

Propinquity Effect

The tendency for people to form friendships or romantic relationships with those whom they encounter frequently.

Physical Attractiveness

The degree to which a person's physical traits are considered aesthetically pleasing or desirable.

Socially Skilled

Refers to an individual's ability to effectively navigate and engage in various social interactions and relationships through the understanding and application of appropriate social behaviors.