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
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
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter11: Determining The Cost Of Capital
Section: Chapter Questions
Problem 3MC
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Question
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
|
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