Purple Pigeon Bird Seed Company currently pays preferred stockholders a dividend of $1.50 per share and common stockholders a dividend of $1.00 per share.

If the firm wants to raise the common stock dividend to $2.00 per share, it will also have to raise the preferred stock dividend to $2.00 per share.

Which type of provision does Purple Pigeon have in its preferred stock agreements?

Explanation:

Purple Pigeon simply have a participating provision with preferred stockholders.

Meaning of Participating Provision: In a given financial year, a participating preferred stock may not only receive dividend that is legally  agreed in the share certificate, but also may receive auxiliary dividends based on fore determined conditions. Simply put that, participation provision in the common stock dividend is an extra incentive to stockholders for taking the risk and funding a company.

This provision where the stockholder not only receive the legally agreed dividend, but also participates in the 'upside' the common stock might experience.

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'