When a Company Has Issued Both Preferred and Common Stock,the

question 80

True/False

When a company has issued both preferred and common stock,the common stockholders receive their dividends first.

---

Definitions:

Return On Equity (ROE)

A financial ratio indicating the profitability of a firm relative to its equity capital.

Liabilities

Financial obligations or debts that a company owes to others, which need to be settled over time.

Assets

Economic resources owned or controlled by an entity, expected to produce value or benefit in the future.

Cycle Inventory

Inventory that is carried as a result of the production or purchase process, determined by the frequency of orders and the quantity of goods ordered each time.