About preferred stocks-stockholders equity includes

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Reference no: EM131334170

1. What is true about preferred stocks?

Preferred stock is debt.

Preferred stock is the same as common stock.

Preferred stocks usually do not have votes.

Preferred stock will always pay dividends yearly.

2. Stockholders' equity includes all of the following except

common stock at par.

treasury stock

contributed capital in excess of par.

retained earnings.

3. One bond in Forest, Inc., has 14 years to maturity and a coupon of 5.2%. The coupon is paid semiannually. If the YTM is 4%, what is the value of the bond?

4. If the bond is trading at $1,000, then

a. compound rate = required rate = current rate

b.coupon rate = current yield = YTM

c. required rate = current yield = YTM

d. none of the above

Reference no: EM131334170

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