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When an Investor Buys Convertible Preference Shares,the Investor

Question 60

Multiple Choice

When an investor buys convertible preference shares,the investor:


A) can replace fixed dividends by coupons.
B) is personally liable for the firm's obligations.
C) has a set dividend rate usually for a five-year period.
D) can convert into preference shares at a predetermined ratio.

Correct Answer:

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