Tri-State Electric is a profitable utility company that has increased its dividend to common stockholders every year for 42 consecutive years. Which of the following is least likely to affect the market price of the company's preferred stock by a significant amount?

Question

Quizplus · Accepted Answer

The announcement of an increase in common stock dividends is least likely to affect the market price of preferred stock significantly, as preferred stock dividends are typically fixed and not directly influenced by changes in common stock dividends.

Tri-State Electric Is a Profitable Utility Company That Has Increased