Included in the share capital of NMO plc is an amount of £100 000 described as '7% preference shares of £1 each'.Which one of the following statements about these shares is correct?

Question

Quizplus · Accepted Answer

Preference shares typically have a fixed dividend amount, which is why option C is correct. Option A is incorrect because if the dividend is fixed at 7p, then it cannot be variable at the discretion of the directors. Option B is incorrect because the dividend amount is fixed and not proportional to the market price of the preference share. Option D is incorrect because at least one of the statements is correct, making it not "none of the above."

Included in the Share Capital of NMO Plc Is an Amount