The Floating Rate Feature on Preferred Stock Allows the Shareholders

question 81

Multiple Choice

The floating rate feature on preferred stock allows the shareholders

• A) to receive more dividends than the quoted yield when the firm enjoys a good year.
• B) to pay lower taxes when the dividend yield increases.
• C) to receive dividends which the corporation did not pay in previous years.
• D) to receive a higher or lower dividend yield depending on current competitive market conditions.

---

Definitions:

Wingman CMS

An advanced driver assistance system designed to provide collision mitigation, lane departure warnings, and adaptive cruise control for vehicles.

Red Light

A traffic signal indicating to stop and remains one of the most universal signals for controlling vehicle movements at intersections.

Closing Distance

The distance between two points or objects that is diminishing over time, often used in the context of safety or navigation.

Ammeter Function

The function of measuring the current flow in amperes in an electrical circuit, typically done by an ammeter.