The prices of preference shares are solely dependent on investors' expectations of future cash flows to the corporation.

Name: The prices of preference shares are solely dependent on investors' expectations of future cash flows to the corporation.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Preference share prices are influenced by several factors including dividend yield, interest rates, and the financial health of the issuing company, not solely on investors' expectations of future cash flows to the corporation.

The Prices of Preference Shares Are Solely Dependent on Investors