Which of the Following Characteristics Apply to Floating Rate Preferred

question 27

Multiple Choice

Which of the following characteristics apply to floating rate preferred shares?

• A) I and II
• B) I, II, and III
• C) III, IV, and V
• D) I, III, and IV
• I.Long maturity date
• II.Pay a fixed dividend
• III.Dividends are paid at regular intervals
• IV.Have a positive yield spread (after tax)over bankers' acceptances
• V.The right to sell them back to the issuer

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Definitions:

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing for full adjustment to changes.

Allocative Efficiency

A condition where resources are distributed according to consumer preferences, optimizing utility for both producers and consumers.

Production

The process of creating goods or services by combining various inputs like labor, materials, and technology.

Total Revenue

The total income a firm receives from selling its products or services, calculated by multiplying the price per unit by the number of units sold.