Shareholders choose to invest in preferred shares because: a. preferred shares can always be converted into ordinary shares at the shareholder's option b. preferred shares include the right to participate in management decisions through voting privileges c. dividends are distributed to preferred shareholders before ordinary shareholders d. the preferred dividend distributions are generally increased each year

Which of the following show the proper effect of a stock split and a stock dividend? Stock Dividend Item Total paid-in capital Item Par value per share Item Total retained earnings Item Total par value (common) Stock Split Increase Stock Split Decrease Stock Split Decrease Stock Split Decrease Increase Stock Dividend No change Stock Dividend Decrease Stock Dividend Increase

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At the present time, Tamin Enterprises does not have any preferred stock outstanding but is looking to include preferred stock in its capital structure in the future. Tamin has found some institutional investors that are willing to purchase its preferred stock issue provided that it pays a perpetual dividend of $13 per share. If the investors pay $100.15 per share for their investment, then what is Tamin's cost of preferred stock?