CFA Practice Question
Which of the following is incorrect? An analyst wishes to calculate the net worth of a company that has preferred shares outstanding. She should:
A. subtract the par value of the preferred.
B. subtract cumulative dividends that may be in arrears.
C. subtract the liquidating value of the preferred.
Explanation: Par value is somewhat meaningless. What matters is how much the preferreds have to be paid.
User Contributed Comments 1
| User | Comment |
|---|---|
| adieu | good question |