1)The redeemable feature of preferred stock allows the preferred stockholder:

To sell the preferred stock for a set price at certain times in the future.

To buy more shares of preferred stock at a set price.

To buy shares of common stock for cash and the preferred stock

To redeem preferred stock for common stock with the right to vote.

2) Which of the following measures a firm's ability to service its debt?

Debt to equity ratio

Return on owners' equity

Return on common stockholders' equity

To redeem preferred stock for common stock with the right to vote.