Adjustable Rate Preferred Stock (ARPS) Offer Competitive Rates of Return

question 3

Multiple Choice

Adjustable rate preferred stock (ARPS) offer competitive rates of return with traditional money-market instruments but:

• A) are not rated by Moody's or Standard & Poor's.
• B) still provide the corporate investor with the tax exclusion on dividend income.
• C) have a fixed rate of dividend income.
• D) offers a highly competitive trading market.
• E) None of these.

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