Question: You work for a public company that has relied heavily
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 dividend rate or a dividend that is determined yearly? In what way might this decision be affected by IFRS?
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