Author Question: Federal regulations make it impossible for rating agencies to drop a company's credit rating more ... (Read 127 times)

Shelles

  • Hero Member
  • *****
  • Posts: 582
Federal regulations make it impossible for rating agencies to drop a company's credit rating more
  than two notches at a time in order to prevent panic in bond markets.
 
  Indicate whether the statement is true or false

Question 2

How is preferred stock similar to bonds?
 
  A) Preferred stockholders receive a dividend payment (much like interest payments to
  bondholders) that is usually fixed.
  B) Dividend payments to preferred shareholders (much like bond interest payments to
  bondholders) are tax deductible.
  C) Investors can sue the firm if preferred dividend payments are not paid (much like
  bondholders can sue for non-payment of interest payments).
  D) Preferred stock is not like bonds in any way.


anyusername12131

  • Sr. Member
  • ****
  • Posts: 327
Answer to Question 1

FALSE

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Addicts to opiates often avoid treatment because they are afraid of withdrawal. Though unpleasant, with proper management, withdrawal is rarely fatal and passes relatively quickly.

Did you know?

Most strokes are caused when blood clots move to a blood vessel in the brain and block blood flow to that area. Thrombolytic therapy can be used to dissolve the clot quickly. If given within 3 hours of the first stroke symptoms, this therapy can help limit stroke damage and disability.

Did you know?

According to research, pregnant women tend to eat more if carrying a baby boy. Male fetuses may secrete a chemical that stimulates their mothers to step up her energy intake.

Did you know?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

Did you know?

Stevens-Johnson syndrome and Toxic Epidermal Necrolysis syndrome are life-threatening reactions that can result in death. Complications include permanent blindness, dry-eye syndrome, lung damage, photophobia, asthma, chronic obstructive pulmonary disease, permanent loss of nail beds, scarring of mucous membranes, arthritis, and chronic fatigue syndrome. Many patients' pores scar shut, causing them to retain heat.

For a complete list of videos, visit our video library