WGU C214 Financial Mgmt Pass the OA Exam with complete solutions

WGU C214 Financial Mgmt Pass the OA Exam with complete solutions Characteristics of preferred stock includes - ANS-dividends in arrears -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 - ANScan go without payment and pay in arrears the following year Characteristics of common stock are - ANS-voting rights -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 - ANSpreferred stock (in an IPO) What stock is considered a hybrid - ANSpreferred stock One thing common stock and preferred stock have in common is - ANSboth have no maturity date Which type of security has voting rights - ANScommon stock Debt covenants and restrictions help to ensure that - ANSmanagement is meeting bond and shareholder expectations NOTE: covenants are promises meant to be kept What is true regarding bonds - ANS-when b