WGU C214 OA FINANCIAL MANAGEMENT EXAM WITH GUARANTEED ACCURATE ANSWERS |PASS!!
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Course
WGU C214
Institution
WGU C214
Characteristics of preferred stock includes - ACCURATE ANSWERS -dividends in arrears
-dividends are cumulative
-higher payoff claim in a BK (has first dibs in a BK)
-considered "hybrid" (part stock/part bond)
-no fixed maturity date
-no voting rights
-can skip dividend payments
-dividends do...
WGU C214 OA FINANCIAL
MANAGEMENT EXAM
WGU C214 OA FINANCIAL MANAGEMENT EXAM WITH GUARANTEED ACCURATE
ANSWERS |PASS!!
Characteristics of preferred stock includes - ACCURATE
ANSWERS✔✔ -dividends in arrears
-dividends are cumulative
-higher payoff claim in a BK (has first dibs in a BK)
-considered "hybrid" (part stock/part bond)
-no fixed maturity date
-no voting rights
-can skip dividend payments
-dividends don't change year-after-year
-used in start ups (IPO)
,Preferred stock dividends - ACCURATE ANSWERS✔✔ can go without
payment and pay in arrears the following year
Characteristics of common stock are - ACCURATE ANSWERS✔✔ -
voting rights
-no maturity date
-corporate governance
-lower payoff claim in BK
-variable returns
-unlimited earnings potential
-earnings are in dividends & the increase in price of stock
New start up ventures often issue - ACCURATE ANSWERS✔✔
preferred stock (in an IPO)
What stock is considered a hybrid - ACCURATE ANSWERS✔✔
preferred stock
One thing common stock and preferred stock have in common is -
ACCURATE ANSWERS✔✔ both have no maturity date
Which type of security has voting rights - ACCURATE ANSWERS✔✔
common stock
, Debt covenants and restrictions help to ensure that - ACCURATE
ANSWERS✔✔ management is meeting bond and shareholder
expectations
NOTE: covenants are promises meant to be kept
What is true regarding bonds - ACCURATE ANSWERS✔✔ -when
bond matures, bondholder gets lump sum back
-coupon rate doesn't change
-maturity is in years
-PAR value is typically $1000
-Future value (same as PAR) is typically $1000
Bond sells at face value when - ACCURATE ANSWERS✔✔ required
rate of return is equal to the coupon rate
Why are bonds the primary method for raising capital - ACCURATE
ANSWERS✔✔ because bonds remove the intermediary costs
NOTE: IPO's require an intermediary known as a syndicate - a group of
banks underwriting the security issue
What type of bond can be traded for stock - ACCURATE
ANSWERS✔✔ convertible bonds
What is the interest rate for annual payments of a bond known as -
ACCURATE ANSWERS✔✔ the coupon rate
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