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Which Statement Regarding Preference Shares Is Correct

Question 6

Multiple Choice

Which statement regarding preference shares is correct?


A) Preference shares typically carry voting rights.
B) Preference shares continue to be a major source of new finance for companies.
C) Preference shareholders do not have the right to receive dividends prior to dividends being paid to ordinary shareholders.
D) Dividends paid on preference shares are not normally tax deductible to the business.

Correct Answer:

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