Liquidation value is the price the company agreed to pay to redeem their preferred shares when the shares were originally issued.

Question

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Liquidation value refers to the value of assets that a company can sell or convert to cash in case of bankruptcy or winding up. It is not related to the price agreed to redeem preferred shares. The price agreed to redeem preferred shares is usually called the redemption price or redemption value.

Liquidation Value Is the Price the Company Agreed to Pay