5. Test Your Knowledge 1- When all of the authorized shares have the same rights and characteristics, the stock is called: A. Preferred stock B. Common stock C. Par value stock D. Stated value stock 2- Owners of preferred stock often do not have: A. Ownership rights to assets of the corporation B. Voting rights C. Preference to dividends D. The right to sell their stock on the open market 3- A company issued 7\% preferred stock with a $100 par value. This means that: A. Preferred shareholders have a guaranteed dividend B. The amount of the potential dividend is $7 per year per preferred share C. Preferred shareholders are entitled to 7% of the annual income D. The market price per share will approximate $100 per share