Some Preferred Stocks Are Participating Preferreds and This May Allow

question 56

True/False

Some preferred stocks are participating preferreds and this may allow for an increase in the preferred stock dividend when the common stock dividend equals the preferred stock dividend.

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Definitions:

Decrease Net Income

Any event or transaction that results in a reduction of the net income of a company.

Decrease In Assets

A reduction in the value or quantity of the resources owned by an entity.

Increase Accounts Payable

An action reflecting a rise in the amount owed by a company to its creditors for goods or services received but not yet paid for.

Accounts Payable

Short-term liabilities representing amounts owed by a business to suppliers or creditors for goods and services purchased on credit.