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
Answer: Option C
Solution (By Examveda Team)
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.This Question Belongs to Management >> International Finance And Treasury
Join The Discussion