From the issuing firm's point of view, one advantage of preferred stock over bonds is   A) preferred dividends are a deductible expense for tax purposes.   B) preferred voting privileges concentrate power in the hands of managers and major shareholders.   C) a dividend payment can be skipped without triggering bankruptcy.   D) all of the above

In what way is a preferred stock usually more similar to a bond than to a common stock? O a. Preferred stockholders are more risky than common stocks O b. Preferred stockholders elect the board of directors of the organization O c. Preferred bondholders participate in the growth of the company through increases in dividends and stock prices O d. Preferred stockholders are typical entitled fixed payments O e. If the company were to go into liquidation, preferred stockholders will be entitled to payments after common stockholders are paid-off

In some circumstances, corporations will buy back their own stock – called Treasury Stock. Identify three reasons why a company may choose to do so.

Mf4. All of the following are advantages of a stock dividend distribution to shareholders on account as of ex-dividend date except?   a. preserves cash balances of the firm to be used for other investment opportunities   b. decrease in share price may attract new investors to raise additional capital   c. bonus share distribution dilutes the share price   d. not treated as a taxable event for investors and shareholders until sold   e. none of the above