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The Options for the blanks 1- Will be / Will not be 2- easier/ more difficult 1. Praferred stock Aa Aa Preferred stock is a

The Options for the blanks

1- Will be / Will not be

2- easier/ more difficult

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1. Praferred stock Aa Aa Preferred stock is a hybrid security because it shares characteristics of both debt and equity securities. However, it is often hard to know how to classify preferred stock when talking about a firm's leverage. For the issuing company, preferred stock is considered less risky than bonds. This is because, if the company fails to distribute the fixed dividends to preferred stockholders, it straighten out its problems. However, if a company continues to pass paying its preferred dividends, raising capital through debt or equity markets becomes forced into bankruptcy before it could Read the following statement about a characteristic of preferred stocks and answer the corresponding question. Preferred stockholders have the same voting rights as common stockholders True or False: The preceding statement accurately describes a characteristic of preferred stocks. O False O True Preferred stock offers the issuing corporation and investors advantages and disadvantages. Which of the statements describes a disadvantage for the issuer of preferred stock? O Nonconvertible preferred stock helps prevent the dilution of common equity. O The after-tax cost of preferred stock is higher then the after-tax cost of debt. Flash Plav MAC 29.0 00 ade it Now Save & Continue Continue without saving Privacy Notice Security Notice Accessibllity Copyright Notices Terms of Use MacBook Ai

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