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preference shares

This topic has 3 replies, 2 voices, and was last updated 8 months ago by Stephen Widberg.

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May 4, 2022 at 7:22 am #654895
thanh123
Member
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hello, I have a question Test your understanding 1 chapter 12 Kaplan study text. My question is why the 1m preference shares are the financial liability & 2m preference shares are the financial equity ? thanks
May 4, 2022 at 5:40 pm #654939
Stephen Widberg
Keymaster
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I don’t keep copies of the study text.
All I can say is that:
1. Redeemable = must pay money = liability
2. Irredeemable = do not need to pay money = equity
Best I can do.
🙂
May 6, 2022 at 9:24 am #655035
thanh123
Member
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- Replies: 30
Thanks tutor a lot !
May 8, 2022 at 8:31 am #655172
Stephen Widberg
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🙂
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