If Class a Preferred Shares Provide Only for a Cumulative

question 60

Multiple Choice

If Class A preferred shares provide only for a cumulative dividend of $3 per share, what will be the consequence on liquidation?

• A) Class A Preferred will receive $3 per share more than common shares.
• B) Class A Preferred will receive 103% of common shares.
• C) Class A Preferred will share equally with common shares.
• D) Class A Preferred will be subordinated to the rights of common shares.

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