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1. The main purpose of a bond ladder is toA. achieve the highest level of capital gains possible.;B. maintain a highly liquid portfolio.;C. less the impact of swings in interest rates.;D. offset the effects of bond duration.2. A corporation that wants to raise funds but that does not want to issue debt or dilute its EPS will most likelyA. issue preferred stock.;B. execute a stock split.;C. issue convertible debentures.;D. execute a reverse stock split.3. Preferred stock investors are primarily subject to two types of risk. These two primary types of risk areA. interest rate and business risk.;B. event risk and liquidity.;C. purchasing power risk and liquidity risk.;D. financial risk and event risk.4. When issuing preferred stock the issuing company typically agrees that it will pay preferred stockholdersA. a dividend that is a certain percentage higher than the dividend payable to common stockholders.;B. the dividend payable to common stockholders plus a special conversion bonus.C. a fixed level of semi-annual dividends and that such payment are to be paid only if dividends are also paid to common stockholders.D. a fixed level of quarterly dividends and that such payments will take priority over common stock dividends.

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