Preferred shares that pay a fixed dividend for as long as the shares remain outstanding are called
A)floating rate shares.
B)rate reset shares.
C)fixed dividend rate shares.
D)perpetual shares.

Question

Quizplus · Accepted Answer

Perpetual shares pay a fixed dividend for as long as the shares remain outstanding, without a set maturity date. Floating rate shares have a floating/dividend yield that changes with market interest rates. Rate reset shares have a fixed rate for a certain period of time, after which the rate resets based on a specified formula or benchmark. Fixed dividend rate shares are not a commonly used term.

Preferred Shares That Pay a Fixed Dividend for as Long