Preference shares are no longer a major source of new finance for companies as:

Question

Quizplus · Accepted Answer

Preference shares dividends are not tax-deductible, which makes them less attractive to investors. Additionally, with interest rates at an all-time low over the past few years, companies have been able to borrow money at lower rates, making preference shares less necessary as a source of new finance. Therefore, the best choice is that preference shares are no longer a major source of new finance for companies because both their dividends are not tax deductible and interest rates have been at an all-time low.

Preference Shares Are No Longer a Major Source of New