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Preferred stock dividends are usually fixed. ()

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One measure of the safety of a preferred stock's dividend is the earnings-per-preferred share. ()

Debt instruments subject their owners to risk from ______ (1)loss of purchasing power (2)higher credit ratings (3) default

A. (1) and (2)
B. (1) and (3)
C. (2) and (3)
D. (1), (2), and (3)

Which of the following bonds is supported by collateral? ____

A. unsecured bonds
B. income bonds
C. equipment trust certificates
D. debentures

Interest is exempt from federal income taxation for __ _

A. equipment trust certificates
B. zero coupon bonds
C. federal bonds such as savings bonds
D. state of Florida bonds

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