Firms Assume ____ Risk When They Issue Preferred Stock Than

question 11

Multiple Choice

Firms assume ____ risk when they issue preferred stock than when they issue bonds. The payment of dividends on preferred stock ____ be omitted without the firm being forced into bankruptcy.

• A)more; can
• B)less; can
• C)more; cannot
• D)less; cannot

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Definitions:

Pseudocoelom

A fluid-filled body cavity lying between the intestines and outer body wall that is only partially lined with mesoderm in some invertebrates.

Mesoderm

The middle germ layer of the early embryo; gives rise to connective tissue, muscle, bone, blood vessels, kidneys, and many other structures. Compare with ectoderm and endoderm.

Coelom

refers to the body cavity in animals that is lined by mesoderm tissue, separating the digestive tract from the outer body wall.

Deuterostomes

A superphylum of animals characterized by the blastopore developing into the anus during early embryo development.