Premium on redemption is which profit to the business
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Explanation:
A company has issued redeemable preferred stock with a call price of $150 per share and has chosen to redeem a portion of them.
However, the stock is trading at $120 in the market.
The company's executives might choose to repurchase the shares rather than pay the $30-per-share premium associated with the redemption.
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Explanation:
premium on redemption. an extra amount above the nominal value of a share or debenture paid to the holder by a company buying back its share or loan stock. close ended.
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