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umka21 [38]
3 years ago
8

Which of the statements below is​ FALSE? A. Preferred stock does not have a maturity date. B. Preferred​ shareholders' dividend

claims take precedence over common​ shareholders' dividend claims. C. Preferred stock cannot be converted into common stock. D. It is common for companies to issue preferred stock with the right to convert to common shares after a specific waiting period
Business
1 answer:
Katarina [22]3 years ago
7 0

Answer:

C. Preferred stock cannot be converted into common stock.

Explanation:

"Equity" refers to shareholders' ownership in a company. Such ownership can be classified into as "preferred stock" or "common stock."

"Preferred stock" is also known as "preferred shares." It is considered a <em>hybrid instrument</em> because it possesses<u> combination of features</u> which cannot be found in a common stock. A "common stock," on the other hand, refers to ordinary shares that entitles the holder.

<u>Remember that a preferred stock can be converted into a common stock.</u> This means that it can be exchange for a particular number of shares, depending on the situation. The <em>investor</em> and the<em> board of directors</em> have the ability to convert some preferred stocks into common stocks. There are times when the stocks already have a specified date for conversion.

So, this explains the answer.

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True or false: stakeholders are individuals or companies that legally own a portion of the company and are not influenced by the
dimulka [17.4K]

It is a false statement that the stakeholders are individuals or companies that legally own a portion of the company and are not influenced by the actions of of that company.

<h3>Who are stakeholders?</h3>

These are investors that has a vested interest in a company and can either affect or be affected by a business' operations and performance. Some examples of a stakeholders includes investors, employees, customers, suppliers, communities, governments, trade associations etc.

However, It is a false statement that the stakeholders are individuals or companies that legally own a portion of the company and are not influenced by the actions of of that company.

Read more about stakeholders

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7 0
1 year ago
What role does budget play and why exhibiting responsible money management behavior is important to reaching future financial go
larisa [96]

Answer:

Some entities will follow a top-down mandatedapproach to budgeting. These budgets will begin with upper-level management establishing parameters under which the budget is to be prepared. These parameters can be general or specific. They can cover sales goals, expenditure levels, guidelines for compensation, and more. Lower-level personnel have very little input in setting the overall goals of the organization.

Explanation:

7 0
3 years ago
You are trying to choose between two stocks, Widget and Gadget. Widget has a current stock price of $30 and earnings per share o
gizmo_the_mogwai [7]

Answer:

Gadget will have higher earning.

Explanation:

Price Earning Ratio is the ratio of Market price to the earning per share. PE Ratio measure the effect of earning over the market price of the company.

Widget

Stock Price = $30

Earning per share = $2

PE ratio = $30 / $2 = 15 times

Gadget

Stock Price = $30

Earning per share = $2

PE ratio = $20 / $1 = 20 times

Gadget will have higher earning.

7 0
2 years ago
Which of the following would not be reported as current liabilities on the balance sheet?
olga55 [171]
D. Accounts receivable
6 0
1 year ago
A mutual fund has $2 million in cash and $6 million invested in securities. It currently has 1 million shares outstanding.
Mamont248 [21]

Answer:

a. NAV = 8 per share

b. 250.000 shares

c. 7.95

Explanation:

a. NAV = Market value of shares/number of shares = $8m/1m = $8 per share

b. At the current NAV, it can absorb up to $2 million, or 250,000 shares.

c-1. Its loss by selling 25,000 shares of IBM at $34 instead of $36 = -$2 x 25,000 = -$50,000.

New NAV = $7,950,000 /1m = $7.95

5 0
3 years ago
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