Market price of preferred stocks


Problem: Adjustable-rate preferred stocks are appealing to investors because _____ the fixed dividend is almost guaranteed, under the current tax laws, interest and dividends are taxed at the same rate, fluctuations in the market price of preferred stocks are minimal since the dividend payment is adjusted as market rates change, or if interest rates decline, the market price of preferred stocks should rise significantly.

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Finance Basics: Market price of preferred stocks
Reference No:- TGS01452015

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