Which of the following is true of preferred stocks? A) ...

[rmenurse]

Which of the following is true of preferred stocks?
 
  A) Preferred stock with a conversion feature allows holders to change each share into a stated number of shares of common stock.
  B) Like bonds, preferred stocks are due for payment on a fixed maturity date along with interest.
  C) Restrictive covenants of preferred stocks include provisions about listing of stocks on the securities exchange and determining the price of stock.
  D) A firm's bond indenture indicates how many authorized preferred shares and bonds it can issue.

Question 2

Net present value (NPV) assumes that intermediate cash inflows are reinvested at the cost of capital, whereas internal rate of return (IRR) assumes that intermediate cash inflows can be reinvested at a rate equal to the project's IRR.
 
  Indicate whether the statement is true or false

[akpaschal]

Answer to Question 1

A

Answer to Question 2

TRUE

[rmenurse]

Thank you

[akpaschal]

Happy to help you