Compare and contrast preferred stock with bonds and common stock
What will be an ideal response?
Answer: Preferred stock is often called a hybrid or combination security, leaning more closely toward bonds. It is similar to common stock because it has no fixed maturity date and not paying dividends will not bring on bankruptcy. It is similar to bonds in that its dividends are of a fixed size and are paid before common stock dividends are paid. It also carries no voting rights. Preferred stockholders do not share in any profit growth of the firm, but are limited to their stated annual dividends. This means, just as with a bond, if the firm has a great year and earns a lot of money, your stock dividend does not change.
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When a company develops a trademark the costs directly related to securing it should generally be capitalized. Which of the following costs associated with a trademark would not be allowed to be capitalized?
a. Attorney fees. b. Consulting fees. c. Research and development fees. d. Design costs.
Because sales people occupy boundary positions they face the potential of demands from:
A. Customers B. Sales managers C. The company D. All of the above E. None of the above