Author Question: A firm's free cash flow (FCF) equals the sum of operating cash flows, financing cash flows, and ... (Read 310 times)

jman1234 · **on:** Jul 10, 2018

A firm's free cash flow (FCF) equals the sum of operating cash flows, financing cash flows, and investing cash flows.

Indicate whether the statement is true or false

Question 2

Which of the following is a disadvantage of issuing preferred stock from the common stockholders' perspective?

A) There is a seniority of preferred stockholder's claim over common stockholders.
B) The preferred stockholders have superior voting rights in the selection of board of directors.
C) The preferred stockholders are always paid a higher proportion of dividend payments.
D) Issuance of preferred stocks will result in a higher risk, to the disadvantage of common stockholders.