What does a violation of preference shares' restrictive covenants usually permit preference shareholders to do to correct the violation? O Sell their shares. O Force the retirement of the preference shares at or above its par value. O Force the company into bankruptcy. O Force a company to repurchase the shares at a stated amount below par.

What is a Rights Issue?(a) The sale of rights to a bond coupon. (b) The right of shareholders to have the company buy back their shares. (c) It is where the firm raises additional equity capital after the IPO. (d) It is a sale of priority rights to creditors in the event of the company being wound up.

5. Which of the following statements is FALSE? a. In the extreme case, the debt holders take legal ownership of the firm's assets through a process called bankruptcy. b. Equity holders expect to receive dividends and the firm is legally obligated to pay them. c. A firm that fails to make the required interest or principal payments on the debt is in default. d. After a firm defaults, debt holders are given certain rights to the assets of the firm.

If you short-sell a stock and it pays a dividend while your short sale is open, then O A. You are unaffected (i.e., you do not receive nor do you pay the dividend) B. You have to pay the dividend to the lender OC. You receive the dividend