Statements is true about preferred stocks

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1. The price quotations of Treasury bonds in the Wall Street Journal show an ask price of 104:32 and a bid price of 104:16. As a buyer of the bond, what is the dollar price you expect to pay?

A. $1,048.00

B. $1,042.50

C. $1,044.00

D. $1,041.25

E. $1,040.40

2. Which one of the following statements is TRUE about preferred stocks?

A. it never receives dividends in arrears

B. it never has a preference to dividends over common stockholders

C. it can be cumulative

D. it has equal rights to common stock

Reference no: EM131962484

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