Question
Which one of the following is FALSE? a. Preference shareholders cannot force a firm into bankruptcy. b. For legal, ccounting, and tax purposes, preference shares
Which one of the following is FALSE?
a. Preference shareholders cannot force a firm into bankruptcy.
b. For legal, ccounting, and tax purposes, preference shares are treated as equity.
c. Preference shareholders stand in front of ordinary shareholders in line for dividends.
d. The previously unpaid dividends for cumulative preference shares can be skipped.
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Handbook Of The Economics Of Finance Volume 2A
Authors: George M. Constantinides, Milton Harris, Rene M. Stulz
1st Edition
0444535942, 978-0444535948
