Which of the Following Statements Is TRUE

question 25

Multiple Choice

Which of the following statements is TRUE?

• A)Preferred stock usually has a stated or par value and,like bonds,this par value is not repaid at maturity because preferred stocks do not have a maturity date.
• B)The par value for preferred stock,unlike bonds,is never paid back.
• C)A preferred stock's cash dividend due each year is based on the stated dividend rate times the market value of the stock.
• D)Some preferred stocks are cumulative with respect to dividends,meaning that if a company skips a cash dividend,it must pay it at some point in the future.

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Definitions:

Delivery Times

The duration it takes for goods or services to be delivered from when an order is placed to when it is received by the customer.

Random Sample

A subset of a statistical population where each member has an equal chance of being chosen.

Variability

The measure of how spread out or scattered the points in a data set are.

Average Ages

The mean age of a group of individuals, calculated by summing their ages and dividing by the number of individuals.