Which of the Following Statements About Floating-Rate Preferred Stock Is

question 5

Multiple Choice

Which of the following statements about floating-rate preferred stock is correct?

• A)its dividends increase as interest rates increase.
• B)its market price increases at a set rate annually.
• C)it is the only stock issued without a par value.
• D)its dividends are deductible for tax purposes by the paying corporation.

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