For a given constant required rate of return, the greatest portion of a preferred stockholder's return comes from increases in the price of preferred stock.

a. True

b. False

Question

Business

Whitney Woods

27 October, 16:08

For a given constant required rate of return, the greatest portion of a preferred stockholder's return comes from increases in the price of preferred stock.

a. True

b. False

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Answers (1)

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Colton Lloyd · Answer 1

The answer to this question is False. A preferred shares have qualities of both a stock and a bond. While the owner of the share is part of owner of the company, their payment is in the form of a dividend. The payments could come monthly, quarterly, or yearly depending on the company's stated policy.

For a given constant required rate of return, the greatest portion of a preferred stockholder's return comes from increases in the price of preferred stock.a. Trueb. False

For a given constant required rate of return, the greatest portion of a preferred stockholder's return comes from increases in the price of preferred stock.

a. True

b. False