Use the following statements to answer this question:
I.A retractable preferred share can be sold back to the issuer.
II.Preferred shares provide the investor an income tax benefit given that dividend income receives preferential tax treatment as compared to interest income.
A)I and II are correct.
B)I and II are incorrect.
C)I is correct and II is incorrect.
D)I is incorrect and II is correct.

Question

Quizplus · Accepted Answer

Both statements are correct. Retractable preferred shares can be sold back to the issuer and preferred shares provide an income tax benefit given that dividend income receives preferential tax treatment as compared to interest income.

Use the Following Statements to Answer This Question