Question: Preference shares are sometimes regarded as a debt security because: Select one: A. legally preference shares are a debt security. B. preference share dividend payments
Preference shares are sometimes regarded as a debt security because: Select one: A. legally preference shares are a debt security. B. preference share dividend payments like bond interest payments are considered fixed obligations for the company. C. preference dividends are paid out of before-tax income just like interest payments on bonds. D. preference shareholders receive a residual value and not a stated value.
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