Asked by Justin alvarado on Apr 24, 2024

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A corporation's capitalization is based on

A) all stockholders,which includes common and preferred stock.
B) common stockholders and bondholders,but not preferred stock.
C) just common stockholders.
D) all stockholders (both common and preferred) as well as all bondholders.

Corporation's Capitalization

The total value of a corporation's issued shares of stock, bonds, and long-term debt, reflecting the market's assessment of its total worth.

Common Stock

Common Stock represents ownership in a corporation, giving shareholders voting rights and a share in the company's profits via dividends.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock and often pays dividends at a fixed rate.

  • Distinguish among diverse business models and their attributes.
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MR
Melissa RamosMay 02, 2024
Final Answer :
D
Explanation :
A corporation's capitalization includes all sources of long-term financing, which encompasses common stock, preferred stock, and bonds. This reflects the total means by which a corporation is financed.