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    Paymeny-in-kind preferred stock

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    Paymeny-in-kind preferred stock has been primarily used to finance _______

    a) new high-risk ventures,
    b) expansion in foreign manufacturing,
    c) takeovers,
    d) privatization of corporations

    please advise answer & why!

    © BrainMass Inc. brainmass.com December 24, 2021, 5:12 pm ad1c9bdddf
    https://brainmass.com/business/finance/payment-kind-preferred-stock-34767

    SOLUTION This solution is FREE courtesy of BrainMass!

    1. c) Takeover. When companies go for leveraged buyouts, they are out of cash and they would like to issue payment in kind preferred stock. That means when the company does not have enough cash to pay for the preferred dividend it will issue further preferred stock for that value.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    © BrainMass Inc. brainmass.com December 24, 2021, 5:12 pm ad1c9bdddf>
    https://brainmass.com/business/finance/payment-kind-preferred-stock-34767

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