Author Question: What is the main difference between common and preferred stocks? a. Common stocks pay interest ... (Read 89 times)

EY67 · **on:** Jun 30, 2018

What is the main difference between common and preferred stocks?
a. Common stocks pay interest whereas preferred stocks pay dividends.
b. Preferred stocks carry voting rights whereas common stocks do not carry voting rights.
c. Preferred stocks pay a guaranteed dividend, while common stocks may or may not pay dividends.
d. In case of bankruptcy, preferred stockholders have a right to the company's asset, whereas common stockholders do not have such rights.
e. Common stocks can be converted into preferred stocks while preferred stocks cannot be converted into common stocks.

Question 2

Total utility is maximized when _____.
a. the marginal utility is maximized
b. the marginal utility is the same for all goods consumed
c. the marginal utility per dollar expenditure is maximized
d. the marginal utility per dollar expenditure is the same for all goods consumed
e. any change in purchases from good A to good B reduces marginal satisfaction