Preferred stock offers the issuing corporation and investors advantages and disadvantages. Which of the following statements describes an advantage for the issuer of preferred stock?
a. Choosing to not pay a preferred dividend payment will not lead the firm to bankruptcy.
b. The after-tax cost of preferred stock is higher than the after-tax cost of debt.

Question

06-12-2022
Business

contestada

Preferred stock offers the issuing corporation and investors advantages and disadvantages. Which of the following statements describes an advantage for the issuer of preferred stock?
a. Choosing to not pay a preferred dividend payment will not lead the firm to bankruptcy.
b. The after-tax cost of preferred stock is higher than the after-tax cost of debt.

Respuesta :

Otras preguntas

Which type of wetland is most likely found in warm, forested areas? Swamps???bogsswampssalt marshesinland marshes

Which ordered pair is a solution to the linear inequality? y - 4 x ≤ - 6 A. (-2, 4) B. (1, -2) C. (1, 3) D. (2, 3) Thank you everyone!

Which two parts of this excerpt from John Bunyan's The Pilgrim’s Progress show that the central character is devoutly religious and God-fearing? Then said Evang

What are the solutions of the equation x² + 4x + 4 = 25 x= 3 or x= -7 x=-3 or x= -7 x= 1 or x=9 x= 1 or x=-9

Help with the top right please

BRAINLIESTTT ASAP!!!! -How did the economic depression impact the following areas? Europe: United States:

In what kind of music does a composer choose pitches, tone colors, and rythems in a random fashion, sometimes even by flipping a coin? Subject : Music A. Pop mu

An air balloon begins it's decent to the ground at 1000 ft above the ground and falls at a rate of 50 ft per minute. Select all that apply to this situation.

What’s the answer to this ?

in a literary analysis paper, first person is not used. true or false?

SidHussain SidHussain · Answer 1 · 2022-12-13T15:08:21+01:00

The statement that describes an advantage for the issuer of preferred stock is a. Choosing to not pay a preferred dividend payment will not lead the firm to bankruptcy.

It is upon the company to understand to invest money in which stocks and which not.

A company will not lead to bankruptcy if it decides to not pay a preferred divident.

In the field of business, divident can be descirbed as a sum of money paid regularly (typically annually) by a company to its shareholders out of its profits (or reserves).

To learn more about dividend, click here:

https://brainly.com/question/2960815

#SPJ4