Entity A issues $100 million 7% cumulative preference shares. Dividends are payable quarterly subject to the availability
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Entity A issues $100 million 7% cumulative preference shares. Dividends are payable quarterly subject to the availability of distributable profits. Issue costs are insignificant. The preference shares are puttable at par to Entity A for cash if interest rates move by 150 basis points. Any dividend that remains accumulated and not paid becomes payable when the shares are put to Entity A. Can the put option be separated from the bonds?
Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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