Which of the Following Regarding Preferred Stock Is True

question 86

Multiple Choice

Which of the following regarding preferred stock is true?

• A) If the price decreases, the required rate of return has decreased.
• B) If the required rate of return increases, the price decreases.
• C) If the required rate of return increases, the price increases.
• D) The price in the market remains at par.

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Definitions:

Technological Advance

(1) An improvement in the quality of existing products, the invention of entirely new products, or the creation of new or better ways of producing or distributing products. (2) Any improvement in the methods by which resources are combined such that the same quantity of inputs can be made to yield a combination of outputs that is preferred to any combination of outputs that was previously possible.

Distributing

The process of making goods or services available to consumers, often through various channels.

Economists' Models

Simplified representations of the real world used by economists to predict economic outcomes and explore economic theories.

Technological Advance

The process of developing and applying new technologies and innovations to improve productivity, efficiency, and offerings in various sectors.