Simple Interest Calculations Practice
10 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What do common stockholders have after all other claims have been settled?

  • Ownership of assets (correct)
  • Preferential treatment in dividends
  • Guaranteed return on investment
  • Fixed annual dividend
  • What is a key characteristic of preferred stock compared to common stock?

  • Priority in dividends (correct)
  • Higher return on investment
  • Lower risk
  • Voting rights
  • In the context of simple interest, what does 'exact interest' refer to?

  • Interest that varies with time
  • Interest calculated using compound interest formulas
  • Interest that is not fixed
  • Interest calculated based on the principal only (correct)
  • How does preferred stock's dividend payment compare to common stock's dividend payment?

    <p>Preferred stock has a higher dividend payment</p> Signup and view all the answers

    What is the main difference between common and preferred stock regarding dividends?

    <p>Preferred stockholders receive dividends first</p> Signup and view all the answers

    In the context of stocks, what does 'residual claim' mean?

    <p>The remaining claim after all other claims are settled</p> Signup and view all the answers

    Which type of stock guarantees a fixed annual dividend regardless of earnings?

    <p>Preferred stock</p> Signup and view all the answers

    What distinguishes preferred stock from common stock in terms of dividend payments?

    <p>'Preferred shares' receive dividends before 'common shares'</p> Signup and view all the answers

    What is the priority level of preferred stock compared to common stock?

    <p>Priority over liquidation proceeds</p> Signup and view all the answers

    Which stock type offers a residual claim on a corporation's assets?

    <p>Common stock</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Browser