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

question 71

Multiple Choice

Which one 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.