Podcast
Questions and Answers
What is the rate of return known as in the context of preferred stock?
What is the rate of return known as in the context of preferred stock?
- Market yield (correct)
- Funding rate
- Dividend rate
- Conversion premium
How is the dividend yield calculated?
How is the dividend yield calculated?
- Dividend price / Stock price (correct)
- Stock price - Dividend price
- Stock price / Dividend price
- Dividend price + Stock price
What does the conversion premium of a convertible preferred stock indicate?
What does the conversion premium of a convertible preferred stock indicate?
- The premium paid to acquire convertible preferred stock
- The cost of converting preferred shares to common shares
- The market yield difference between preferred and common shares
- The premium above the common share value for converting preferred shares (correct)
In payback calculation, what does the term 'payback' refer to?
In payback calculation, what does the term 'payback' refer to?
If Company X has a dividend yield of 8% and Company Y has a dividend yield of 10%, what can you infer about the two companies?
If Company X has a dividend yield of 8% and Company Y has a dividend yield of 10%, what can you infer about the two companies?
What does a higher dividend yield indicate about a stock?
What does a higher dividend yield indicate about a stock?
How is the formula for calculating payback defined?
How is the formula for calculating payback defined?
In the context of retractable preferreds, how is the yield calculated when the price is greater than the retraction price?
In the context of retractable preferreds, how is the yield calculated when the price is greater than the retraction price?
What happens to the retractable preferreds when the price is less than the retraction price?
What happens to the retractable preferreds when the price is less than the retraction price?
How are variable or floating rate preferred dividends affected?
How are variable or floating rate preferred dividends affected?
What characterizes deferred preferreds?
What characterizes deferred preferreds?
What distinguishes callable preferreds from regular preferreds?
What distinguishes callable preferreds from regular preferreds?
What distinguishes preferred shares from common shares in terms of dividend payments?
What distinguishes preferred shares from common shares in terms of dividend payments?
Which type of preferred shares may not have a maturity date like a bond?
Which type of preferred shares may not have a maturity date like a bond?
What is the formula for pricing preferred dividends in perpetuity?
What is the formula for pricing preferred dividends in perpetuity?
Why do investors receive dividend tax credit when investing in preferred shares?
Why do investors receive dividend tax credit when investing in preferred shares?
What aspect of a preferred share limits the opportunity for price increase compared to common shares?
What aspect of a preferred share limits the opportunity for price increase compared to common shares?
Why are preferred dividends primarily considered fixed income investments?
Why are preferred dividends primarily considered fixed income investments?
