Preferred shares that the issuing corporation,at its option,may retire by paying a specified amount to the preferred shareholders plus any dividends in arrears are called
A)Convertible preferred shares
B)Callable preferred shares
C)Private shares
D)Cumulative preferred shares
E)Participating preferred shares

Question

Quizplus · Accepted Answer

Preferred shares that the issuing corporation may retire by paying a specified amount to the preferred shareholders plus any dividends in arrears are called callable preferred shares. This means that the corporation can choose to buy back the shares at a predetermined price, giving them more control over their capital structure.

Preferred Shares That the Issuing Corporation,at Its Option,may Retire by Paying