The remainder of the paper is organised as follows. Section 2 discusses the hypothesis development
and prior literature. Section 3 documents the change in MRPS issuance after SFAS 150,
and Section 4 analyses the change in characteristics of MRPS-issuing firms after SFAS 150 came
into effect. Section 5 documents the difference in issuance costs between MRPS and debt, and
Section 6 concludes.