Which of the following statements is true in relation to the call price of preference shares? The call price is used in computing book value per share. In the absence of call price, the liquidation value is disregarded and the par or stated value is instead used. The call price is the amount paid to preference shareholders upon redemption of preference shares during the lifetime of the entity. All of these statements are true.
Which of the following statements is true in relation to the call price of preference shares? The call price is used in computing book value per share. In the absence of call price, the liquidation value is disregarded and the par or stated value is instead used. The call price is the amount paid to preference shareholders upon redemption of preference shares during the lifetime of the entity. All of these statements are true.
Chapter19: Corporations: Distributions Not In Complete Liquidation
Section: Chapter Questions
Problem 17DQ
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Which of the following statements is true in relation to the call price of preference shares ?
The call price is used in computing book value per share.
In the absence of call price, the liquidation value is disregarded and the par or stated value is instead used.
The call price is the amount paid to preference shareholders upon redemption of preference shares during the lifetime of the entity.
All of these statements are true.
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