WGU C214 FINANCIAL MANAGEMENT PASS
THE OA EXAM WITH CORRECT ACTUAL
QUESTIONS AND CORRECTLY WELL DEFINED
ANSWERS LATEST ALREADY GRADED A+
Terms in this set (160)
Characteristics of preferred stock -dividends in arrears
includes -dividends are cumulative
-higher payoff claim in a BK (has first dibs in a BK)
-considered "hybrid" (part stock/part bond)
-no fixed maturity date
-no voting rights
-can skip dividend payments
-dividends don't change year-after-year
-used in start ups (IPO)
Preferred stock dividends can go without payment and pay in arrears the
following year
Characteristics of common stock -voting rights
are -no maturity date
-corporate governance
-lower payoff claim in BK
-variable returns
-unlimited earnings potential
-earnings are in dividends & the increase in price
of stock
, New start up ventures often issue preferred stock (in an IPO)
What stock is considered a hybrid preferred stock
One thing common stock and both have no maturity date
preferred stock have in common is
Which type of security has voting common stock
rights
Debt covenants and restrictions management is meeting bond and shareholder
help to ensure that expectations
NOTE: covenants are promises meant to be kept
What is true regarding bonds -when bond matures, bondholder gets lump sum
back
-coupon rate doesn't change
-maturity is in years
-PAR value is typically $1000
-Future value (same as PAR) is typically $1000
Bond sells at face value when required rate of return is equal to the coupon
rate
Why are bonds the primary method because bonds remove the intermediary costs
for raising capital NOTE: IPO's require an intermediary known as a
syndicate - a group of banks underwriting the
security issue
THE OA EXAM WITH CORRECT ACTUAL
QUESTIONS AND CORRECTLY WELL DEFINED
ANSWERS LATEST ALREADY GRADED A+
Terms in this set (160)
Characteristics of preferred stock -dividends in arrears
includes -dividends are cumulative
-higher payoff claim in a BK (has first dibs in a BK)
-considered "hybrid" (part stock/part bond)
-no fixed maturity date
-no voting rights
-can skip dividend payments
-dividends don't change year-after-year
-used in start ups (IPO)
Preferred stock dividends can go without payment and pay in arrears the
following year
Characteristics of common stock -voting rights
are -no maturity date
-corporate governance
-lower payoff claim in BK
-variable returns
-unlimited earnings potential
-earnings are in dividends & the increase in price
of stock
, New start up ventures often issue preferred stock (in an IPO)
What stock is considered a hybrid preferred stock
One thing common stock and both have no maturity date
preferred stock have in common is
Which type of security has voting common stock
rights
Debt covenants and restrictions management is meeting bond and shareholder
help to ensure that expectations
NOTE: covenants are promises meant to be kept
What is true regarding bonds -when bond matures, bondholder gets lump sum
back
-coupon rate doesn't change
-maturity is in years
-PAR value is typically $1000
-Future value (same as PAR) is typically $1000
Bond sells at face value when required rate of return is equal to the coupon
rate
Why are bonds the primary method because bonds remove the intermediary costs
for raising capital NOTE: IPO's require an intermediary known as a
syndicate - a group of banks underwriting the
security issue
