Preferred shareholders' claims on assets and income of a firm come those of creditors those of common shareholders.

Related MCQs

• Lei-Feng, Inc.'s $100 par value preferred stock just paid its $10 per share annual dividend. The preferred stock has a current market price of $96 a share. The firm's marginal tax rate (combined federal and state) is 40 percent, and the firm plans to maintain its current capital structure relationship into the future. The component cost of preferred stock to Lei-Feng, Inc. would be closest to .
• Suppliers and Creditors of a firm are interested in
• A firm is said to be financially unlevered firm if the firm has ……….
• “Shareholders Wealth” in a firm is reflected by:
• A firm determines the shareholders’ wealth by taking
• Book value ( Net assets )= Total Assets - _______________
• Cash & Bank Rs. 20,000; Debtors Rs. 2,00,000; Stock Rs. 2,80,000 and Current Liabilities: Creditors Rs. 1,00,000; Bills Payable Rs. 50,000. Then the working capital is:
• Payment to creditors is a manifestation of cash held for:
• Cash discount terms offered by trade creditors never be accepted because
• Debt to Total Assets of a firm is .2. The Debt to Equity boo would be: