A violation of preferred stock restrictive covenants usually permits preferred shareholders to
A. force the company into bankruptcy.
B. sell their shares.
C. force the retirement of the preferred stock at or above its par value.
D. force the company to repurchase the shares at a stated amount below par.
Answer:C
A violation of preferred stock restrictive covenants usually permits preferred shareholders to
A. force the company into bankruptcy. B. sell their shares. C. force the retirement of the preferred stock at or above its par value. D. force the company to repurchase the shares at a stated amount below par.