Preference Shares Are Often Considered to Be Closer to Debt

Preference shares are often considered to be closer to debt as they:

A) May be issued with the condition that they are redeemable by the company in the future.
B) May guarantee a regular or cumulative payment, similar to interest.
C) May be able to be converted into ordinary shares at a specific date in the future, indicating they are a liability until that time.
D) May guarantee a regular or cumulative payment, similar to interest and may be able to be converted into ordinary shares at a specific date in the future, indicating they are a liability until that time.
E) May be issued with the condition that they are redeemable by the company in the future and may guarantee a regular or cumulative payment, similar to interest.