Finc 331 Quiz 3 Questions And Answers 100% Verified A+ Guaranteed

Common stockholders are sometimes referred to as​ ________. A. creditors B. managers C. non preemptive right holders D. residual owners {Ans: D. residual owners}Common stockholders expect to earn a return by receiving​ ________. A. semiannual interest B. fixed periodic payments C. annual interest D. dividends {Ans: D. dividends}At year-end, Tangshan China Company balance sheet showed total assets of $60 million, total liabilities​ (including preferred​ stock) of​ $45 million, and​ 1,000,000 shares of common stock outstanding. Based on this​ information, Tangshan's book value per share of common stock is​ ________. A. $150 B. $10.50 C. $15 D. $105​ {Ans: C. $15 $60 million-$45 million= 15 Million/ 1 million= $15 Assets= Liabilities+ Preferred Stock Equity + Common Stock Equity}Which of the following is a disadvantage of issuing preferred stock from the common​ stockholders' perspective? A. There is a seniority of preferred​ stockholder's claim over common stockholders. B. The preferred stockholders are always paid a higher proportion of dividend payments. C. Issuance of preferred stocks will result in a higher​ risk, to the disadvantage of common stockholders. D. The preferred stockholders have superior voting rights in the selection of board of directors. {Ans: A. There is a seniority of