When callable preferred stock is called and surrendered,the shareholder is entitled to all of the following except
A) dividends in arrears.
B) the par value of the stock.
C) a call premium.
D) the market value of the stock.

Question

Quizplus · Accepted Answer

When callable preferred stock is called and surrendered, the shareholder is entitled to the par value of the stock plus any call premium, but not the current market value of the stock. Dividends in arrears may also be paid out. Therefore, among the given options, the shareholder is not entitled to the market value of the stock.

When Callable Preferred Stock Is Called and Surrendered,the Shareholder Is