A Dividend Preference for Preferred Shares Means That

question 24

Multiple Choice

A dividend preference for preferred shares means that:

• A) Preferred shareholders are allocated their dividends before any dividends are allocated to common shareholders.
• B) Dividends are paid quarterly.
• C) Preferred shareholders are guaranteed dividends.
• D) Only preferred shareholders will receive dividends.
• E) All of these answers are correct.

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Definitions:

Supply Curves

Graphical representations that show the relationship between the price of a good and the quantity of the good that producers are willing to supply.

Demand Curves

Graphical representations showing the relationship between the price of a product and the quantity of the product that consumers are willing and able to purchase.

Satisfies Consumer Wants

The fulfillment of consumer desires and needs through the provision or consumption of goods and services.

Utility

In economics, utility refers to the satisfaction or pleasure derived from consuming goods or services.