When the dividend rate on preferred stock is less than the rate of return earned...

70.2K

Verified Solution

Question

Accounting

When the dividend rate on preferred stock is less than the rate of return earned on a corporations assets, it is called:

A. Financial leverage.

B. Discount on stock.

C. Premium on stock.

D. Preemptive right.

E. Capital gain.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students