Which of the Following Statements Is TRUE

question 2

Multiple Choice

Which of the following statements is TRUE?

• A) Preferred stock usually has a stated or par value and, like bonds, this par value is not repaid at maturity because preferred stocks do not have a maturity date.
• B) The par value for preferred stock, unlike bonds, is never paid back.
• C) A preferred stock's cash dividend due each year is based on the stated dividend rate times the market value of the stock.
• D) Some preferred stocks are cumulative in dividends, meaning that if a company skips a cash dividend, it must pay it at some point in the future.

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Definitions:

Parenchyma

A type of plant tissue composed of living cells, typically having large vacuoles, thin walls, and found in parts of the plant responsible for photosynthesis, storage, and transport.

Sieve-Tube Member

A cell found in the phloem of vascular plants, part of a system that transports sugars and other metabolic products downward from the leaves.

Vascular Tissue

The specialized tissue in plants that is involved in the transport of water and nutrients; it includes xylem and phloem.

Inhibited Growth

A reduction in the normal rate of cellular or organismal growth, often caused by environmental factors or genetic conditions.