Skip to content

To institutional investors, preferred stock may be very attractive because:

Looking for the answer to the question below related to Financial Management?

To institutional investors, preferred stock may be very attractive because:

 Options:

A. dividend payments are assured
B. dividends from another corporation are usually tax-exempt
C. the preferred yield is normally higher than that of debt
D. it provides balance to the issuing firm’s capital structure

 

The Correct Answer Is:

  • B. dividends from another corporation are usually tax-exempt

 

Conclusion

I hope you got the answer to your question.

Leave a Reply

Your email address will not be published. Required fields are marked *