FIN3403 ORANGE EXAM WITH CORRECT ANSWERS | GRADED A+ | 2024

FIN3403 ORANGE EXAM WITH CORRECT ANSWERS | GRADED A+ | 2024 For a stock to be in equilibrium, that is, for there to be no long-term pressure for its price to depart from its current level, then ________. the expected future return must be less than the most recent past realized return. the past realized return must be equal to the expected return during the same period. the required return must equal the realized return in all periods. the expected return must be equal to both the required future return and the past realized return. the expected future return must be equal to the required return ANS, the expected future return must be equal to the required return. Which of the following statements is CORRECT? Preferred stockholders have a priority over bondholders in the event of bankruptcy to the income, but not to the proceeds in a liquidation. The preferred stock of a given firm is generally less risky to investors than the same firm's common stock. Corporations cannot buy the preferred stocks of other corporations. Preferred dividends are not generally cumulative. A big advantage of preferred stock is that dividends on preferred stocks are tax deductible by the issuing corporation. ANS, The preferred stock of a given firm is generally less risky to investors than the same firm's common stock. Which of the following statements is CORRECT