Why Might Corporations Prefer Issuing Preferred Shares to Debt

question 59

Multiple Choice

Why might corporations prefer issuing preferred shares to debt?

• A) Dividends are payable at the discretion of the corporation.
• B) Debt payments are payable at the discretion of the corporation.
• C) Dividends are tax deductible to the corporation.
• D) Interest expense is tax deductible to the corporation.

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Definitions:

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Schizophrenia

A chronic brain disorder that affects a person's thinking, feeling, and behavior, leading to psychotic symptoms such as delusions and hallucinations.

Identical Twins

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Single Placenta

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