alleryStart learning →Which preferred stock has no fixed date for returning capital?
APutable preferred
BPerpetual preferred
CConvertible preferred
DExchangeable preferred
Answer & Solution
Correct answer: B. Perpetual preferred
Perpetual preferred has no maturity, so capital is never scheduled to be repaid.
Keep practising Bond Valuation
Browse all Bond Valuation questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
The price-yield relation of a bond is described as what?For a discount bond, how does YTM compare with current yield?On a bond sold at a clean quote, what does the buyer pay at settlement?After a coupon is paid, how does a bond's dirty price behave?A 6% par-100 bond pays on 1 Apr and 1 Oct. On 1 Jul clean price is 98.20. Under 30/360 theHow does the term-structure approach discount a bond's cash flows?In the DDM, the dividend growth rate serves as a proxy for what?Which preferred stock carries an embedded option to swap into another security?