Which of the Following Statements Is Correct

question 89

Multiple Choice

Which of the following statements is correct?

• A) A floating rate bond has an advantage over a fixed rate bond because its price is more stable and this makes a floating rate preferred bond more suitable as a liquid asset.
• B) Convertible preferred stock would likely appeal more to income-oriented investors because they can convert their capital gains into bond income simply by converting their preferred stock into bonds.
• C) One advantage of preferred stock from an issuer's perspective is that it has a lower after-tax cost than that of debt.
• D) One principal advantage of preferred stock is that preferred stockholders have a legal enforceable right to their stock dividend,thus,preferred stock is generally less risky than unsecured debt.
• E) Because of the 70% dividend exclusion rule for preferred stock dividends,the higher a company's tax bracket,the more likely it is to issue preferred stock.

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Definitions:

Adverse Events

Unintended and harmful events or reactions caused by medical management or health interventions, rather than by the underlying condition of the patient.

Patient Education

Teaching patients about their health conditions, treatment options, and lifestyle adjustments to promote optimal disease management and prevention.

Care Coordination

The deliberate organization of patient care activities between two or more participants involved in a patient's care to facilitate the appropriate delivery of health care services.

Priority Population

Specific groups of people singled out for targeted health interventions or policies due to their higher risk of health disparities.