The profits that remain after paying the preference dividend fully belong to whom?

Equity Shareholders

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Preference Shareholders

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CFO

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CEO

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Solution

The correct option is A
Equity Shareholders

Equity shareholders share the remaining profits.

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Similar questions

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

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 ________________.

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. Preference shareholders are ______ of the company.

Q. Which one of the statements applies only to Preference Shareholders?

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The profits that remain after paying the preference dividend fully belong to whom?

The correct option is A Equity Shareholders Equity shareholders share the remaining profits.

The correct option is A
Equity Shareholders

Equity shareholders share the remaining profits.