Question
13. Debentures would be considered high-risk bonds True False 14. Convertible preferred stock and cumulative preferred stock have this feature in common: _______ they both
13. Debentures would be considered "high-risk" bonds
True
False
14. Convertible preferred stock and cumulative preferred stock have this feature in common: _______
they both allow holders to vote
they both do not allow holders to vote
they both provide dividends
they both allow holders to vote and do not allow holders to vote
they both do not allow holders to vote and provide dividends
15. Mill says that even lenders deserve remuneration for letting out their money to borrowers. However, he points out that this is interest and what indemnifies the loan is abstaining from
making bad loans
charging interest rates that are too low to sustain the lender's institution
lending to other companies or investing and, instead, lending to your company
cost-shifting the interest rate
making usurious loans
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