When preferred shares are issued in an ITA 86 reorganization, it is important that they have characteristics that serve to establish their fair market value. Which of the following would NOT be useful in establishing the fair market value of preferred shares?
A) A fixed dividend rate.
B) A claim to assets that has priority over the common shares in the event of liquidation.
C) A provision which requires redemption at a specified value at the discretion of the shareholder.
D) Voting rights.
Correct Answer:
Verified
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