Preferred Stock Finance Multiple Choice Questions (MCQ) PDF Download

MCQ 1: The type of stock which have characteristics of bonds and common stock is classified as

1. bonds equity
2. common shares
3. common stock
4. preferred stock

MCQ 2: The stock which has fixed payments and failure of payments which do not lead to bankruptcy is classified as

1. common stock
2. preferred stock
3. bonds equity
4. common shares

MCQ 3: The value of stock is $400 and the required rate of return is 20% then the preferred dividend would be

1. 80
2. 8000
3. 20
4. 50

MCQ 4: The preferred stock dividends must be paid on common stock and must have

1. fixed amount of dividends
2. fixed amount of shares
3. variable amount of dividends
4. variable amount of shares

MCQ 5: The value of stock is $900 and the required rate of return is 30% then the preferred dividend will be

1. 270
2. 27000
3. 90
4. 90