Question 11. Question:( 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?
Convertible Callable Cumulative Credible None of the above
Question 12. Question:( TCO 5) A very safe investment that generally attracts conservative investors is called a( n) _____ stock.
penny cyclical growth small cap blue chip
Question 13. Question:( 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.