Which of the Following Regarding Preferred Stock Is True

question 86

Multiple Choice

Which of the following regarding preferred stock is true?

• A) If the price decreases, the required rate of return has decreased.
• B) If the required rate of return increases, the price decreases.
• C) If the required rate of return increases, the price increases.
• D) The price in the market remains at par.

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Definitions:

DNS Server

A server that translates domain names into IP addresses, enabling users to access websites using human-friendly URLs rather than numerical IP addresses.

IP Address

An exclusive set of digits delineated by periods, used to identify every computer that communicates through a network using the Internet Protocol.

SSL Protocol

A cryptographic protocol designed to provide secure communication over a computer network, commonly used on the Internet for securing data transfer.

Encryption

The process of converting information or data into a code, especially to prevent unauthorized access.