All of the following are given as possible motivations for a corporation to issue preferred shares except:
A) Raise capital without sacrificing voting control.
B) If the preferred shares are convertible, they are more attractive to potential investors.
C) Increase the return of common shareholders.
D) Appeal to investors who do not want to invest in common shares.
E) Preferred dividends are paid before common dividends.

Question

Quizplus · Accepted Answer

The Answer of All of the following are given as possible motivations for a corporation to issue preferred shares except:
A) Raise capital without sacrificing voting control.
B) If the preferred shares are convertible, they are more attractive to potential investors.
C) Increase the return of common shareholders.
D) Appeal to investors who do not want to invest in common shares.
E) Preferred dividends are paid before common dividends.

All of the Following Are Given as Possible Motivations for a Corporation