Preferred Stock Pays a ________ Dividend

question 37

Multiple Choice

Preferred stock pays a ________ dividend.

• A)fixed
• B)variable
• C)lower
• D)higher

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Definitions:

Factoring Fee

A charge assessed for the service of factoring, where a business sells its receivables to a third party at a discount.

Accounts Receivable

The money owed to a business by its customers for goods or services delivered or used but not yet paid for, considered a current asset on the balance sheet.

Promissory Note

A Promissory Note is a financial instrument wherein one party promises in writing to pay a determinate sum of money to another, either at a fixed or determinable future time.

Specified Amount

The exact sum of money stated in a financial document or agreement.