The type of preferred stock in which the dividend does not increase or decrease with the increase or decrease in profit of firm is classified as ____________?
Correct answer: C. non-participating preferred stock
- A. non-cumulative preferred stock
- B. cumulative preferred stock
- C. non-participating preferred stock
- D. participating preferred stockTrack Stocks Bonds
Explanation
Non-participating preferred stock pays its stated dividend and does not share in additional profits when the company earns more. Participating preferred stock, by contrast, may receive extra dividends.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
Practise Business Finance
975 free Business Finance MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Management Sciences questions like this
Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Business Finance questions
The agreement between two parties to exchange cash flows in future and the cash flows are based on underlying instruments is classified as ___________?
The difference between net proceeds and gross proceeds is called __________?
The indexes in which the price of stock of companies listed in stock market index are added together and is divided by an adjusted value are classified as ________?
The contract which gives the rights to holders to sell or buy the asset at specific time period rather than giving the obligation is classified as ___________?
The example of derivative securities is ___________?
The orders that are transacted at specified price are considered as ___________?