### Preferred Stock and Voting Privileges**Quiz Question:****Statement:**"A special right often granted to preferred stock is additional voting privileges."**Question Type:** True or False**Answer Options:**- True- FalsePlease select either "True" or "False" to indicate whether the statement above is correct.**Explanation:**Commonly, preferred stockholders do not receive additional voting privileges. Instead, their benefits typically include fixed dividends and priority over common stockholders in asset liquidation during a company wind-up. This concept is crucial for understanding the different rights and privileges associated with various types of stock in corporate finance.

STOCKHOLDERS WITH PREFERRED STOCK HAVE HIGHER CLAIM ON DISTRIBUTIONS ( DIVIDENDS) THAN COMMON…

Answered: A special right often granted to…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 1MC: Which of the following is not a characteristic that sets preferred stock apart from common stock? A....

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answer true or false. please write out complete word TRUE OR FALSE Common stock carries voting privileges while preferred stock gives up this right to receive a dividend preference________________________. The board of directors who are responsible for dividends creates the liability for dividends on the declaration date ___________________________. The par value is the minimum arbitrary value set for a company’s shares ___________________. Deferred revenues are liabilities which arise when a company receives cash prior to the performance of a service____________________. A negative characteristic of corporations is double taxation ________________________. Copyrights and patents are intangible assets which require annual amortization___________________.
H5. A member or candidate who changes his recommendation on a stock can comply with the Standards by communicating this change to clients according to: Question 35Answer a. number of shares of the stock owned by the client. b. known interest of the client in the stock. c. size of the client. Explain wrong options and explain with full details
Which of the following describes preferred stock? O a. Stock which gives shareholders certain preferences and advantages over common stock O b. Stock that is purchased by the corporation for investment purposes c. Stock that sells for a very high price O d. Stock that is sold to employees of the company as a performance incentive
CHOICES A. Only Statement I is correctB. Only Statement II is falseC. Statements II and III are falseD. Only Statement III is falseE. All statements are correct
An advantage of preferred stock financing is preferred ______. a. stockholders can vote for the Board of Directors and be an integral part of the direction of the company b. stock is the most preferred method of raising capital c. stock dividends are tax-deductible for the investor d. stock dividends are flexible, and the penalties for not paying a dividend are not severe
Which of the following statements is not true about preferred stock? A.The rate of dividend is usually fixed B.Stockholders' usually have a preference as to dividends C. Stockholders always have a voting right D. Stockholders' usually have a preference as to assets upon liquidation of the corporation
The biggest advantage of common stockholders is that they have __________ which is not available with the preferred stockholders. Select one: A. None of the given options B. Voting Right C. Claim on Assets D. Dividend Righty
fill the blank
Answer the multiple-choice question below: 1. Which of the following is/are incorrect about the characteristics of preferred stock: I.It has a fixed maturity date II.Dividends are tax-deductible III.Dividend payments vary just like common stock IV.Can be easily converted to a number of common stock Select one: a. I and II only b. I only c. I, II, and III only d. All of the above
Which of the following is a feature associated with preferred stock? Preferred stockholders are entitled to dividends Preferred stock is not perpetual in nature Preferred stockholders do not have voting rights In case of liquidation, preferred stockholders have less priority over common stockholders Dividends on any type of preferred stock do not accumulate in arrears and are not paid at a later date if firms are currently unable to pay
Match each description with the characteristic of preferred stock that it best describes. A. Cumulative B. Noncumulative C. Nonparticipating D. Participating 1. Receives current and all past dividends before common stockholders receive any dividends. 2. Receives dividends exceeding the stated rate under certain conditions. 3. Not entitled to receive dividends in excess of the stated rate. 4. Loses any dividends that are not declared in the current year.
***New ans please How is basic EPS different from diluted EPS? When calculating diluted EPS, how does the treasury stock method differ from the if-converted method? Discuss 3 pros and 3 cons of offering stock options as compensation to employees.

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A special right often granted to preferred stock is additional voting privileges. True or False True False