O - Test 5- Requires Respondus LockDown Browser 'ime Left:1:39:45 Ralph King: Attempt 1 Page 1 of 12 Previous Page Next Page Question 1 (0.125 points) How is preferred stock similar to bonds? 0 A) Dividend payments to preferred shareholders (much like bond interest payments to bondholders) are tax deductible. O B) investors can sue the firm if preferred dividend payments are not paid (much like bondholders can sue for non-payment of interest payments). 0 C) Preferred stockholders receive a dividend payment (much like interest payments to bondholders) that is usually fixed. 0 D) Preferred stock is not like bonds in any way. Question 2 (0.125 points) What is the value of a preferred stock that pays a $3.50 dividend to an investor with a required rate of return of 9% (round your answer to the nearest $1)? 0 A) $33.50 0 a) $43.75 ' O C) $39 0 o) $40.25