Preferred stock is perpetuity

Reference no: EM131947220

1. (TRUE or FALSE?) Corporations may either retain the residual earnings or return them in the form of common stock dividends.

2. (TRUE or FALSE?) Preferred stock is a perpetuity.

3. (TRUE or FALSE?) The CAPM solves for the rate of return that investors demand for holding a company’s common stock according to the degree of diversifiable risk present in the stock.

Reference no: EM131947220

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