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Company A issues preference shares to Company B, the terms of which entitle party B to redeem the preference shares for cash if Company As
Company A issues preference shares to Company B, the terms of which entitle party B to redeem the preference shares for cash if Company As revenues fall below a specified level. From Company As perspective the preference shares are:
Select one:
a. a compound financial instrument
b. a financial asset
c. a financial liability
d. an equity instrument
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