Preference shareholders are entitled to a fixed rate of _________.

Interest

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Dividend

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Coupon

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Capital

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Solution

The correct option is B Dividend
Preference shares are issued to the shareholders with a fixed rate of dividend. Preference shareholders are having preference over equity shares for getting the dividend amount.

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Similar questions

Payment of fixed rate of dividend to preference shares may enable a company to declare higher rates of dividend for the equity shareholders in good times.

Q. A ______ is allocated as a fixed amount per share, with shareholders receiving a dividend in proportion to their shareholding.

Q. Equity shareholders are entitled to _________.

Q. Consider the following statements:
(1) Preference shares can be redeemed either out of profit of the company or out of the proceeds of fresh issue.
(2) Preference shares are redeemed after equity shares.
(3) Preference shareholders have preference right as to dividend as well as return of capital.
(4) A company cannot issue preference shares redeemable after 20 years.
The correct statements are ________________.

Q. The following statements apply to equity/preference shareholders. Which one of them applies only to Preference Shareholders?

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Preference shareholders are entitled to a fixed rate of _________.

The correct option is B DividendPreference shares are issued to the shareholders with a fixed rate of dividend. Preference shareholders are having preference over equity shares for getting the dividend amount.

The correct option is B Dividend
Preference shares are issued to the shareholders with a fixed rate of dividend. Preference shareholders are having preference over equity shares for getting the dividend amount.