ACCOUNTING / FINANCE

ACCOUNTING / FINANCE

Which of the following characteristics apply to equity? L Purchasing stock grants the buyer a proportional ownership interest in the firm II. Payments to equity-holders, Le dividend payments are tax deductible to the firm. Reasonable stockholders may expect a certain level of uncertainty or variability in their dividend payments over the long term. IV. Excessive levels of equity can lead to the lon's financial distress or bankruptcy. 1 & ll only 18 ill only & IV only 11, 11, & IV only I, II, III, & IV QUESTION 11 A preferred stock plans to pay an annual dividend of $7 indefinitely. What is one share of this stock worth today if the average investor requires an annual 14 percent rate of return? $6.14 $98.00 $7.98 $43.00 $50.00