Other questions in this quiz

2. Which of the following statements is true?

  • A company may only make dividend payments to common stockholders after have been paid to preferred stockholders.
  • Preferred stockholders usually have superior voting rights compared with common stockholders.
  • Unlike preferred stockholders, common stockholders do not normally receive dividends.

3. Dividend payments on preferred stock are:

  • Typically fixed
  • Always cumulative
  • Known as "special" dividends

4. Which of the following statements is true?

  • Like common stock, all preferred stock is perpetual.
  • Convertible preferred stock is typically noncallable.
  • Common stock carries voting rights, while preferred stock typically does not.
  • Preferred stock is the most popular form of stock.

5. You are given the following information about a stock: Share price: USD 20 EPS: USD 0.80 P/E: 25 DPS: USD 0.10 What is the stock's dividend yield correct to two decimal places?

  • DPS/Share Price
  • -

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