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The FASB decided in SFAS No.150 that mandatorily redeemable preferred stock should be, in general, classified as debt, even if the firm will issue its

The FASB decided in SFAS No.150 that mandatorily redeemable preferred stock should be, in general, classified as debt, even if the firm will issue its own equity shares in settlement. How is this inconsistent with the current definition of liabilities?

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