u/Obviouswy

Question is below. I thought the answer was warrants becasue they don't pay divs but Q bank says the answer is Preferred stock. I dont get the explanation given.

Among the popular methods of valuing equity securities is the dividend growth model. One could expect to see an analyst using the issue's dividends this to value any of these except

A) common stock.

B) warrants.

C) preferred stock.

D) ADRs representing common stock in a foreign company.

Explanation

In order to use the dividend growth model, there must be a possibility of dividend growth. Because preferred stock dividends are fixed, this tool would not make any sense. Furthermore, this model deals with dividends and warrants do not pay any dividends.

Which comes first in order of liquidation? Unpaid wages and taxes or secured creditors?

I had a weird test question and am still unsure of the answer. The gist of the question was: An advisor invites an existing client and a group of the client's friends to a sports game for the purpose of having the existing client talk up the advisors services during the game. The question asked is whether this counts as advertising and if so whether the sports ticket given to the existing client counts as payment for advertising services rendered.

I was asked on the test who had priority in a bankruptcy claim: IRS debt or employee wages. I still dont know the answer as the test prep providers seem to list them both as one line item.

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