1. A debt security pays
A. a fixed level of income for the life of the owner.
B. a variable level of income for owners on a fixed income.
C. a fixed or variable income stream at the option of the owner.
D. a fixed stream of income or a stream of income that is determined according to a specified formula for the life of the security
2. Which one of the following statements is correct?
A. Common Stock dividends cannot be paid if preferred stock dividends are in arrears.
B. Preferred stock dividends cannot be paid if common stock dividends are in arrears.
C. Common and preferred dividends must be paid simultaneously.
D. No dividends on the common stock can be paid without specific shareholder approval.