Reference no: EM132044426

All else being equal, is a firm more or less likely to purchase preferred stock as an investment if its tax rate increases?

a. more likely b. less likely c. doesn't matter

Which of the following is true about market auction preferred stock?

a. Yield set on the issue after an auction on the preferred stock is the lowest yield sufficient to sell all shares being offered at that auction.

b. Yield set on the issue after an auction on the preferred stock is the highest yield sufficient to sell all shares being offered at that auction.

Earnings per share are found based on the assumption that all convertibles and warrants are exercised rather than trying to estimate how many of them are likely to be exercised.

Identify which of the reporting methods this statement describes:

a. Primary EPS

b. Basic EPS

c. Diluted EPS