Which one of the following is an advantage of being a limited partner?
a. nontaxable share of any profits
b. control over the daily operations of the firm
c. losses limited to capital invested
d. unlimited profits without risk of incurring a loss
e. active market for ownership interest
Ans: c. losses limited to capital invested
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Which statement concerning retailing is correct?
a. Retailing activities cannot be performed by wholesalers. b. It is the last stage in the distribution process. c. All retail activities are store-based. d. A lawyer purchasing stationery for use in his/her office is an example of retailing.
Crane Industries Inc. has outstanding borrowings that include preferred stock. One of these borrowings is (nonconvertible) preferred stock (cumulative) with a par value of $250 and an annual dividend rate of 8.25%
This preferred stock is currently selling for $260 per share. What is the yield or return on this nonconvertible preferred stock? What will be an ideal response?