Preferred Stock Generally Pays

question 22

Multiple Choice

Preferred stock generally pays

• A)a variable dividend
• B)a fixed dividend
• C)a stock dividend
• D)no dividend

---

Definitions:

Minimum Lease Payments

The lowest amount that a lessee is obligated to pay over the lease term for the right to use an asset, including principal and interest.

Executory Costs

Expenses associated with the ongoing execution of agreements or contracts, such as maintenance and insurance costs in leasing agreements.

Guarantee

A promise or assurance, typically in writing, that certain conditions will be fulfilled, often related to the quality, durability, or performance of a product.

Capital Lease

A capital lease is a lease agreement where the lessee receives ownership rights over the asset, for accounting purposes, similar to a purchase financed through a loan.