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If a Firm Wants to Be Able to Redeem Some

Question 3

Multiple Choice

If a firm wants to be able to redeem some of its preferred stock at some date after issue, it must _____. 


A) pay accumulated dividends to the common stockholders
B) issue the stock at par value at the time of issue
C) incorporate a call provision in the preferred stock issue
D) provide voting rights to preferred stockholders
E) include a preemptive right in the preferred stock issue

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