BUSN 380 Course Great Wisdom / tutorialrank.com BUSN 380 Course Great Wisdom / tutorialrank.com | Page 61

Question 11. 11. (TCO 5) Bill Affleck is interested in buying
preferred stock, but to be protected if the company needs to omit a
dividend payment. He wants any unpaid dividends to accumulate and
be paid before any common stock dividends are paid. Which one of
these features of preferred stock is Bill seeking?
Callable
Cumulative
Credible
None of the above

Question 12. 12. (TCO 5) Common stock represents _____.
a loan to a company
corporate ownership
a loan to an investor
a guarantee of dividends
a cash distribution

Question 13. 13. (TCO 5) One option for long-term corporate
financing is equity financing, and this is a popular choice because
a lender is always available to provide this type of financing.