WGU C214 FINANCIAL MANAGEMENT PASS THE OA EXAM|150 QUESTIONS AND ANSWERS| UPDATE|A GRADED

WGU C214 FINANCIAL
MANAGEMENT PASS THE OA
EXAM|150 QUESTIONS AND
ANSWERS| UPDATE|A GRADED

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Terms in this set (160)

, -dividends in arrears
-dividends are cumulative
-higher payoff claim in a BK (has first
dibs in a BK)
-considered "hybrid" (part
Characteristics
stock/part bond)
of preferred
-no fixed maturity date
stock includes
-no voting rights
-can skip dividend payments
-dividends don't change year-after-
year
-used in start ups (IPO)

Preferred stock can go without payment and pay in
dividends arrears the following year

-voting rights
-no maturity date
-corporate governance
Characteristics
-lower payoff claim in BK
of common
-variable returns
stock are
-unlimited earnings potential
-earnings are in dividends & the
increase in price of stock

, New start up preferred stock (in an IPO)
ventures often
issue

What stock is preferred stock
considered a
hybrid

One thing both have no maturity date
common stock
and preferred
stock have in
common is

Which type of common stock
security has
voting rights

Debt covenants management is meeting bond and
and restrictions shareholder expectations
help to ensure NOTE: covenants are promises
that meant to be kept