Why Would an Investor Favor a Common Share Over a Preferred

question 110

Multiple Choice

Why would an investor favor a common share over a preferred share?

• A)To obtain a bigger potential capital gain.
• B)To obtain repayment of the face value at maturity.
• C)To obtain a fixed dividend.
• D)To obtain a fixed coupon payment.
• E)To obtain a variable dividend

---

Definitions:

R

A symbol commonly used to represent resistance in electrical circuits, measured in ohms (Ω).

Reactive Power

The portion of electricity that oscillates between the source and load in an AC system, essential for maintaining the voltage to deliver active power (work) but itself does no work.

RC Parallel Circuit

A circuit configuration where a resistor (R) and a capacitor (C) are connected alongside each other and share the same two nodes, resulting in a specific impedance.

R

In electrical engineering, symbolically represents resistance, the property of a material that opposes the flow of electric current, measured in ohms (Ω).