BUSN 380 help Making Decisions/uophelp.com BUSN 380 help Making Decisions/uophelp.com | Page 71

Ex dividend date
None of the above
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.
it does not cost anything to sell in the primary market.
repayment doesn't have to be made for 10 years or more.
only interest must be paid for the first 5 years.
it does not have to be repaid.
Question 14. 14. (TCO 5) Which of the following statements is false?
Stockholders elect the board of directors.
Stockholders pay taxes on dividends.
Intelligent investors must be concerned about future after-tax profits.