If no redemption provision is provided on preferred stock,the equity allocation base is based on par value of the stock less any liquidation premium.

Question

Quizplus · Accepted Answer

If no redemption provision is provided on preferred stock, the equity allocation base is based on the total amount received by the preferred stockholders in liquidation, not just the par value less any liquidation premium.

If No Redemption Provision Is Provided on Preferred Stock,the Equity