Preference shares are sometimes regarded as a debt security because:
A) legally preference shares are a debt security.
B) preference shareholders receive a residual value and not a stated value.
C) preference dividends are paid out of before-tax income just like interest payments on bonds.
D) preference share dividend payments,like bond interest payments are considered fixed obligations for the company.
Correct Answer:
Verified
Q2: Which of the following characteristics is not
Q3: Which one of the following statements is
Q4: The term shareholder equity implies:
A)a right to
Q5: Which one of the following statements is
Q6: Which one of the following statements is
Q8: Which of the following is not a
Q9: Which one of the following statements is
Q10: Which one of the following statements is
Q11: Direct search markets are characterised by:
A)a high
Q12: Traditional preference shares:
A)have a maturity date.
B)pay dividends
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