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Fiche 1,  Justifications,  Anglais

Record number: 1, Textual support number: 1 CONT

Shares which meet the requirements of the exception are often referred to as financial difficulty shares or distress preferred shares. These shares allow the creditor to convert debt to shares and thus receive dividends which are deductible in computing taxable income as opposed to receiving fully taxable interest income. The creditor can then charge a lower dividend rate than the interest rate and achieve the same after-tax rate of return. Although the lower dividends are not deductible by the debtor, this is not usually of consequence given the financial difficulty and resulting loss situation.  2, fiche 1, Anglais, - financial%20difficulty%20shares

Fiche 1,  Justifications,  Français

Fiche 1,  Justifications,  Espagnol