Preferred Stock and Long-Term Bonds Are Similar Because

question 47

Multiple Choice

Preferred stock and long-term bonds are similar because

• A)they both have voting power
• B)interest and dividend payments are fixed
• C)interest and dividend payments are legal obligations
• D)interest and dividend payments are tax-deductible expenses

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Definitions:

Equal Participation

The concept that all members of a group have the same opportunity and responsibility to contribute to a process or activity.

Self-Handicapping

A cognitive strategy by which people avoid effort in the hopes of keeping potential failure from hurting self-esteem.

Disadvantage

A circumstance or condition that unfavorably affects someone, reducing their chances of success.

Own Ability

An individual's self-assessed competence or skill in a particular area.