Which of the Following Is True Regarding a Firm's Securities

question 63

Multiple Choice

Which of the following is true regarding a firm's securities

• A)Common dividends are paid before preferred dividends.
• B)Preferred stockholders have voting rights.
• C)Preferred dividends are usually cumulative.
• D)Preferred dividends are contractual obligations.
• E)Common dividends usually can be paid if preferred dividends have been skipped.

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Definitions:

Fate

A predetermined course of events often considered inevitable or outside human control.

Risk-taking Propensity

An individual's tendency or willingness to take risks or engage in behaviors that could lead to significant gains or losses.

Personality

The unique and individual differences in patterns of thinking, feeling, and behaving that characterizes a person.

Engage

To participate or become involved in an activity or interaction.