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Which Three of the Following Statements Correctly Apply to Preference

Question 21

Multiple Choice

Which three of the following statements correctly apply to preference shares?


A) Preference shares usually carry voting rights.
B) When compared with bonds, they offer a higher rate of return but at higher risk to the investor.
C) The dividend on them is paid before anything is paid out to ordinary shareholders.
D) They usually offer their owners a fixed rate of dividend each year.

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