Else Equal Firm Less Likely Purchase Preferred Stock Investment Tax Rate Increases Likely Q28823957
All else being equal, is a firm more or less likely to purchasepreferred 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 preferredstock?
a. Yield set on the issue after an auction on the preferredstock is the lowest yield sufficient tosell all shares being offered at that auction.
b. Yield set on the issue after an auction on the preferredstock is the highest yield sufficient tosell all shares being offered at that auction.
Earnings per share are found based on the assumption that allconvertibles and warrants are exercised rather than trying toestimate how many of them are likely to be exercised.
Identify which of the reporting methods this statementdescribes:
a. Primary EPS
b. Basic EPS
c. Diluted EPS