NACVA Exam CVA Topic 6 Question 110 Discussion

Actual exam question for NACVA's CVA exam

Question #: 110
Topic #: 6

[All CVA Questions]

The special characteristics of the preferred stock that we typically encounter include all of the following EXCEPT:

ADividend rate

BLiquidation preference

CCumulative versus noncumulative dividends

DConvertible versus nonconvertible rights into preferred equity

Show Suggested Answer

Suggested Answer: D

by Mike at May 01, 2025, 02:37 AM

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Kimberlie

22 days ago

I'm drawing a blank on this one. Preferred stock is a real snooze-fest!

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Donte

5 days ago

C) Cumulative versus noncumulative dividends

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Devora

8 days ago

B) Liquidation preference

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Jonell

11 days ago

A) Dividend rate

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Glennis

28 days ago

I think that's correct because the other options are commonly associated with preferred stock.

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Mirta

1 months ago

I believe the answer is D) Convertible versus nonconvertible rights into preferred equity.

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Annamae

1 months ago

D) Convertible versus nonconvertible rights is a key feature of preferred stock, so that can't be the answer.

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Annamae

4 days ago

C) Cumulative versus noncumulative dividends

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Dong

7 days ago

B) Liquidation preference

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Julie

13 days ago

A) Dividend rate

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Mable

1 months ago

I agree, they can really impact the value of the stock.

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Antonio

1 months ago

B) Liquidation preference seems like the odd one out here. Preferred stockholders get paid first in a liquidation event.

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Lorrie

1 months ago

I think the special characteristics of preferred stock are important in the exam.

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Galen

2 months ago

I think the answer is A) Dividend rate. Preferred stock usually has a fixed dividend rate, not a special characteristic.

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Ben

17 days ago

Oh, I see. Thanks for clarifying!

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Tiera

22 days ago

No, that's not correct. It's actually D) Convertible versus nonconvertible rights into preferred equity.

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Skye

24 days ago

I think the answer is A) Dividend rate.

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