Type of preferred stock in which dividend does not increase or decrease with increase or decrease in profit of firm is classified as

A non-cumulative preferred stock
B cumulative preferred stock
C non-participating preferred stock
D participating preferred stock

Correct Answer: non-participating preferred stock

Type of preferred stock in which dividend does not increase or decrease with increase or decrease in profit of firm is classified as non-participating preferred stock. Non-participating preferred stock is preferred stock that specifically limits the amount of dividends paid to its holders.
Bissoy MCQ
#Management #International Finance And Treasury

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