Which of the Following Is Not True

question 142

Multiple Choice

Which of the following is not true?

• A)Callable preferred shares provide the issuer with the right to repurchase preferred shares at a specified price,
• B)If financing becomes available at a cost lower than the rate fixed for the preferred shares, the issuing firm can reduce its financing costs by issuing new securities and then exercising its option to reacquire the outstanding callable preferred shares at a fixed price.
• C)The call option is valuable to the issuing firm but makes the shares less attractive to potential owners of the shares.
• D)Other things equal, a firm will receive a smaller amount from issuing callable preferred shares than from issuing noncallable preferred shares.
• E)Callable preferred shares provide the issuer with the obligation to repurchase preferred shares at a specified price,

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Definitions:

Neurologist

A medical doctor specialized in diagnosing, treating, and managing disorders and diseases of the nervous system, including the brain and spinal cord.

Primary Source

An original document or firsthand account not interpreted by another person or source.

Surgery

A medical procedure involving an incision with instruments; performed to repair damage or arrest disease in a living body.

Comfort

A state of physical and emotional well-being where an individual is free from pain, distress, or anxiety.