The Floating Rate Feature on Preferred Stock Allows the Shareholders

question 81

Multiple Choice

The floating rate feature on preferred stock allows the shareholders

• A) to receive more dividends than the quoted yield when the firm enjoys a good year.
• B) to pay lower taxes when the dividend yield increases.
• C) to receive dividends which the corporation did not pay in previous years.
• D) to receive a higher or lower dividend yield depending on current competitive market conditions.

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Definitions:

Prospective Pricing

A pricing approach where the price for services, especially in healthcare, is determined in advance based on expected costs.

Provider's Coding

The process by which healthcare providers specify diagnostic and treatment codes for patient care, used for billing and record-keeping purposes.

Retrospective Payment

is a method of payment in which charges are based on actual costs incurred, typically analyzed and paid after the service has been provided.

Fee-For-Service

A payment model where services are unbundled and paid for separately, commonly used in healthcare.