Answered step by step
Verified Expert Solution
Question
1 Approved Answer
preferred stock is used much less than long term debt in the capital structure of most industrial and manufacturing companies principally because : a. preferred
preferred stock is used much less than long term debt in the capital structure of most industrial and manufacturing companies principally because : a. preferred stock may be convertible to common stock, but long-term debt cannot be convertible b. for income tax purposes, dividends paid on preferred stock are not deductible, but interest on long term debt is deductible. c. the preferred stock dividend requirement is a fixed claim against income, but interest on long-term debt is not a fixed amount. d. preferred stock has a fixed liquidation or redemption valu, but long term debt does not have a fixed maturity value
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started