Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

Exercise 12

You work for a public company that has relied heavily on debt financing in the past and is now considering a preferred stock issuance to reduce its debt-to-assets ratio. Debt to-assets is one of the key ratios in your company's loan covenants. Should the preferred stock have a fixed annual dividend rate, or a dividend that is determined yearly In what way might this decision be affected by IFRS