All of the following are given as possible motivations for a corporation to issue preferred shares except
A)Raise capital without sacrificing voting control.
B)Increase the return of common shareholders.
C)Appeal to investors who do not want to invest in common shares.
D)If the preferred shares are convertible,they are more attractive to potential investors.
E)Preferred dividends are paid before common dividends.

Question

Quizplus · Accepted Answer

Preferred dividends being paid before common dividends is a characteristic of preferred shares, not a motivation for issuing them.

All of the Following Are Given as Possible Motivations for a Corporation