When Would a Company Be Likely to Call Its Preferred

question 100

Multiple Choice

When would a company be likely to call its preferred stock?

• A) If it decides it would rather have corporate bonds
• B) When it needs additional long-term financing
• C) As the preferred stock matures and must be redeemed
• D) When the call premium becomes high enough to justify the call
• E) When it can issue new common stock to replace the preferred stock

---

Definitions:

Interpersonal Relations

The way in which two or more people interact and communicate with each other in various settings.

Hackman-Oldham Job Enrichment Model

A theory that suggests work can be more satisfying by increasing job responsibility, achievement opportunities, and growth.

High Achievers

Individuals who consistently perform at a high level and excel in achieving their goals or objectives.

Low Achievers

Individuals who perform below the expected standard in terms of skills or accomplishments.