You work for a public company that has relied heavily on debt financing in the past and

Question:

You work for a public company that has relied heavily on debt financing in the past and is now considering a preferred stock issuance to reduce its debt-to-assets ratio. Debt-to-assets is one of the key ratios in your company’s loan covenants. Should the preferred stock have a fixed annual rate or a that is determined yearly? In what way might this decision be affected by IFRS?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...