Which of the following statements is CORRECT?
a. A major disadvantage of financing with prefer...
Business, 12.03.2020 17:24 Laylahlettiere
Which of the following statements is CORRECT?
a. A major disadvantage of financing with preferred stock is that preferred stockholders typically have supernormal voting rights.
b. Preferred stock is normally expected to provide steadier, more reliable income to investors than the same firm’s common stock, and, as a result, the expected after-tax yield on the preferred is lower than the after-tax expected return on the common stock.
c. The preemptive right is a provision in all corporate charters that gives preferred stockholders the right to purchase (on a pro rata basis) new issues of preferred stock.
d. One of the disadvantages to a corporation of owning preferred stock is that 70% of the dividends received represent taxable income to the corporate recipient, whereas interest income earned on bonds would be tax free.
e. One of the advantages to financing with preferred stock is that 70% of the dividends paid out are tax deductible to the issuer.
Answers: 2
Business, 22.06.2019 19:40
Last year ann arbor corp had $155,000 of assets, $305,000 of sales, $20,000 of net income, and a debt-to-total-assets ratio of 37.5%. the new cfo believes a new computer program will enable it to reduce costs and thus raise net income to $33,000. assets, sales, and the debt ratio would not be affected. by how much would the cost reduction improve the roe? a. 11.51%b. 12.11%c. 12.75%d. 13.42%e. 14.09%
Answers: 3
Business, 22.06.2019 21:40
Penny poodle wanted to know which dog obedience training program was more effective: puppy pride, the approach she has been using for any years, or doggie do-right, a new approach. penny convinced 50 human companions of untrained dogs to participate in her study. the dogs and their humans were randomly assigned to complete the puppy pride or doggie do-right course. at the end of the training programs, all of the dogs were scored on their level of obedience on a standardized dog obedience checklist (scores could range from 10 to 100). the design of this study is:
Answers: 2
Business, 23.06.2019 11:10
If canada has a surplus of paper products produced but its consumers demand more cleaning solutions, and the us has an abundance of cleaning solutions but consumers are demanding more paper products, how would trade benefit both countries? trade would assist both countries by creating excess demand. trade would assist both countries by strengthening their natural resources. trade would assist both countries to both reduce excess supply and satisfy market demand.
Answers: 3
Mathematics, 01.10.2019 10:10
Mathematics, 01.10.2019 10:10
Mathematics, 01.10.2019 10:10
History, 01.10.2019 10:10
Mathematics, 01.10.2019 10:10
World Languages, 01.10.2019 10:10
Mathematics, 01.10.2019 10:10
English, 01.10.2019 10:10
Mathematics, 01.10.2019 10:10
English, 01.10.2019 10:10
History, 01.10.2019 10:10
Geography, 01.10.2019 10:10
Biology, 01.10.2019 10:10
Mathematics, 01.10.2019 10:10
Mathematics, 01.10.2019 10:10
Mathematics, 01.10.2019 10:10