Which of the following is not indicative of a complex capital structure?

Question

Quizplus · Accepted Answer

Outstanding cumulative preferred stock is not indicative of a complex capital structure. Complex capital structures typically involve multiple layers of securities with varying levels of priority, such as convertible bonds, convertible preferred stock, and stock options. Cumulative preferred stock simply means that if a company does not pay a dividend in a given period, the dividends accumulate and must be paid before dividends can be paid to common shareholders. However, this does not necessarily make the capital structure complex.

Which of the Following Is Not Indicative of a Complex