….principle says that issue of debt and preference shares do not affect the interest of equity share holders.

Name: ….principle says that issue of debt and preference shares do not affect the interest of equity share holders.
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Question

Quizplus · Accepted Answer

The Control principle states that the issue of debt and preference shares does not affect the interest of equity shareholders because these financial instruments do not carry voting rights, thus not diluting the control of existing equity shareholders.

…Principle Says That Issue of Debt and Preference Shares Do