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.

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Definitions:

Hirsutism

A condition characterized by excessive growth of dark or coarse hair in women on areas of the body where hair is usually minimal or absent, often a symptom of underlying hormonal imbalance.

Nervous

Feeling anxious or apprehensive, often as a response to stress or an unfamiliar situation.

Circulatory

Pertaining to the circulatory system, which is the system responsible for circulating blood and lymph through the body.

Keloid

An overgrowth of new skin tissue; a scar.