From an Investor's Perspective,a Firm's Preferred Stock Is Generally Considered

question 11

True/False

From an investor's perspective,a firm's preferred stock is generally considered to be less risky than its common stock but more risky than its bonds.However,from a corporate issuer's standpoint,these risk relationships are reversed: bonds are the most risky for the firm,preferred is next,and common is least risky.

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Before-Tax Income

Market income plus transfers.

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Taxations placed upon employers or employees, usually based on a percentage of the income that employees receive from their employers.

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