To be classified as a hard retraction Which of the following is required?
A)The preferred shares must be paid off with common shares or other preferred shares.
B)The preferred shares must be paid off with cash.
C)The preferred shares must be paid off within 30 days of retraction.
D)The preferred shares can only be retracted in cases of financial distress.

Question

Quizplus · Accepted Answer

To be classified as a hard retraction, the preferred shares must be paid off with cash. Option A is incorrect because paying off with common shares or other preferred shares would be classified as a soft retraction. Option C is incorrect because there is no specific timeline for a hard retraction. Option D is also incorrect because the reason for retraction is not a determinant of whether it is a hard or soft retraction.

To Be Classified as a Hard Retraction Which of the Following