Why might corporations prefer issuing preferred shares to debt?
A) Dividends are payable at the discretion of the corporation.
B) Debt payments are payable at the discretion of the corporation.
C) Dividends are tax deductible to the corporation.
D) Interest expense is tax deductible to the corporation.
Correct Answer:
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A) investments by the creditors
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Q45: Preferred shares normally have voting rights.
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Q47: A corporation may issue:
A) common shares and
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