When Would a Company Be Likely to Call Its Preferred

question 194

Multiple Choice

When would a company be likely to call its preferred stock?

• A) If it decides it would rather have corporate bonds
• B) When it needs additional long-term financing
• C) As the preferred stock matures and must be redeemed
• D) When the call premium becomes high enough to justify the call
• E) When it can issue new ordinary share to replace the preferred stock

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Price Increases

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