Which of the following characteristics apply to floating rate preferred shares?
I.Long maturity date
II.Pay a fixed dividend
III.Dividends are paid at regular intervals
IV.The right to sell them back to the issuer
A)I and II
B)I, II, and III
C)III and IV
D)I and III

Question

Quizplus · Accepted Answer

Floating rate preferred shares have a long maturity date (I) and pay dividends at regular intervals (III), but they do not pay a fixed dividend (II) or give the right to sell them back to the issuer (IV). Therefore, the correct characteristics for floating rate preferred shares are I and III, which are only found in option D.

Which of the Following Characteristics Apply to Floating Rate Preferred