When callable preferred stock is called and surrendered, the shareholder is entitled to all of the following except
A) dividends in arrears.
B) a prorated portion of the current period's dividend.
C) a call premium.
D) the market value of the stock.

Question

Quizplus · Accepted Answer

When callable preferred stock is called and surrendered, the shareholder is entitled to receive dividends in arrears, a prorated portion of the current period's dividend, and a call premium. They are not entitled to the market value of the stock, as that value will be returned to the shareholder upon surrender.

When Callable Preferred Stock Is Called and Surrendered, the Shareholder