alleryStart learning →What defines perpetual preferred stock?
AMandatory conversion in a year
BHolder can force redemption
CDividend rises with profit
DNo fixed date for return of capital
Answer & Solution
Correct answer: D. No fixed date for return of capital
Perpetual preferred has no fixed date on which the invested capital is returned to the shareholder.
Keep practising Sources of Finance
Browse all Sources of Finance questions for CA Inter, or explore more Financial Management topics.
Related questions
What is the usual outcome at the end of a finance lease, as in hire purchase?Under operating lease treatment, what happens to leverage ratios?Under the IFRS approach, when is a lease a finance lease?How does capitalising a finance lease affect the balance sheet?Who is typically the legal owner of the asset during a finance lease?Historically, how have many IPOs been priced relative to market demand?In a Dutch auction IPO, what do all successful bidders pay?A greenshoe option usually lets underwriters raise the offering by up to what percentage?