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Money Market Preferred Stock Offers Competitive Rates of Return Similar

Question 38

Multiple Choice

Money market preferred stock offers competitive rates of return similar to traditional money-market instruments but:


A) forfeits the tax benefits normally provided to corporate shareholders.
B) still provides the corporate investor with the tax exclusion on dividend income.
C) has a fixed rate of dividend income.
D) is only an overnight investment.
E) has highly volatile stock prices due to the fixed coupon.

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