If preferred shares are callable,then:

Question

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If preferred shares are callable, it means that the corporation has the right to redeem or purchase back the shares at a specified cash price. This gives the corporation the flexibility to either retire the shares or issue new ones with a lower dividend rate if interest rates decline. The preferred shareholders may not have the same option to turn in their shares for cash or exchange them for common shares.  Dividends in arrears may still be owed to the preferred shareholders even if the shares are callable.

If Preferred Shares Are Callable,then