Profitable Companies Often Prefer to Issue Debt Rather Than Preferred

question 65

Multiple Choice

Profitable companies often prefer to issue debt rather than preferred stock because

• A) debt creates less risk for the company.
• B) interest payments are fixed but preferred shareholders expect dividends to grow.
• C) preferred shares dilute the voting rights of common shareholders but bonds do not.
• D) interest on debt is deductible for tax purposes, but preferred dividends are not.

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Definitions:

Personal Protective Equipment

Personal protective equipment, or PPE, refers to protective clothing, helmets, gloves, face shields, goggles, facemasks, and/or respirators or other equipment designed to protect the wearer from injury or infection.

Blood Sample

A small amount of blood taken from a person, usually for laboratory testing or analysis to assess health conditions.

Aseptic Technique

A set of practices and procedures performed under sterile conditions to minimize the risk of infection.

Surgical Unit

A specialized hospital department where surgical procedures are performed and patients receive postoperative care.