Exercise 12-13 Identifying characteristics of preferred shares LO5 Match each of the numbered descriptions with the characteristic of preferred shares that it best describes 1. The holders of the shares can exchange them for common shares 2. The issuing corporation can retire the shares by paying a prearranged price The holders of the shares are entitled to receive dividends in excess of the stated rate under some conditions 4. The holders of the shares are not entitled to receive dividends in excess of the stated rate 5. The holders of the shares lose any dividends that are not declared 6. The holders of the shares are entitled to receive current and all past dividends before common shareholders receive any dividends 6. Callable or redeemable Convertible Cumulative Non-cumulative Non-participating Particinating