Question: A difference between ordinary and preference shares is: A. preference dividends are payable only after ordinary dividends have been paid B. preference dividends are tax

A difference between ordinary and preference shares is:

A. preference dividends are payable only after ordinary dividends have been paid B. preference dividends are tax deductible

C. preference dividends are a fixed amount

D. ordinary shares are less risky

E. preference shares have greater potential for capital gains.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Would greatly appreciate some help with these questions 1. Ordinary shares: (a) represent a residual claim to the firm's assets in liquidation (b) mature on a predetermined date (c) have a return...

Q:

1. Depending upon the circumstances, equity can also be referred to as: A. ordinary shares B. common stock C. risk capital D. shareholders' funds. E. all of these. 2. Debt financing can be raised by...

Q:

3. Which of the following statements is true about fund managers? A. Fund managers generally provide payment services and investment products. B. Fund managers provide a 'safe haven' for investors'...

Q:

2. If you put $800 in a savings account at the end of each year for 15 years, how much money will be in the account at the end of the 15th year? Assume that the account earns 12% per annum and round...

Q:

A difference between ordinary and preference shares is: a . The riskiness of preference shares and ordinary shares are similar. b . Preference dividends are a fixed amount. C . Ordinary shares have...

Q:

CourseFinancial Makets and Institutions Choose the best answer from the given alternatives A difference between ordinary and preference shares is: Preference dividends are payable only after ordinary...

Q:

A difference between ordinary and preference shares is: a . Ordinary shares have greater potential for capital gains. b . Preference dividends are a fixed amount. c . The riskiness of preference...

Q:

All ich is NOT a standard feature of Treasury Bonds? 13. Of the following which is NOT (a) Floating-interest rate coupons (b) Half-yearly coupons (c) Redeemed by the payment of face value All of...

Q:

School of Finance & Economics theses question are related to case studies 1Calculate ABC?s company after-tax WACC, rounded to four decimal places. 2Calculate the Detergent Division cost of capital,...

Q:

Hello there Tutors, I was wondering if anyone can please read through the case study and answer question 1 and 2 at the back. That is what is the WACC and the divisional WACC for detergent. I really...

Q:

Coatings applied to long metallic strips are cured by installing the strips along the walls of a long oven of square cross section. Thermal conditions in the oven are maintained by a long silicon...

Q:

1. What role does credit play in your money management strategy? 2. Between student loans, home loans, and credit cards, which is the overall best credit tool and why?

Q:

A hula hoop and solid disc of equal radii are rolled, from rest and without slipping, down an incline plane. Which one will reach the bottom of the inclined plane first? Explain.

Q:

Outline the factors that influence price sensitivity.

Q:

Discuss other factors that influence pricing.

Q:

Explain what a break-even analysis is, and how to perform it.