Preferred stock is often referred to as a hybrid security for which of the following reasons?
A) Preferred stock dividends are fixed like bond payments but the maturity is indefinite like common stock.
B) Preferred stockholders have preference over common stock holders in bankruptcy, but are subordinate to bondholders.
C) Both A and B are typically true.
D) Neither A nor B are typically true.
C
You might also like to view...
Which statement regarding gift giving in the United States is incorrect?
a. Business gifts to an office are intended for the manager to be taken home to share with his or her family. b. The best rule to follow when giving a business gift in the United States is to limit the price to $25 or less. c. In the United States gifts are opened in front of the giver. d. Exchanging gifts among colleagues is becoming less common.
All supply and demand quantities in an assignment model equal one unit
Indicate whether the statement is true or false