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A company issued 10% dividend shares with right to participate in surplus profit every year. Though these shares does not have preference of repayment of capital but they have preference of payment of arrear of dividend at the time of winding up. These shares are?
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Definition of 10% Dividend Shares
10% dividend shares refer to a type of equity shares that entitle the holders to receive a fixed dividend of 10% of the face value of the share every year. These shares do not have any preference for repayment of capital, but they have a preference for payment of arrear of dividend at the time of winding up.
Features of 10% Dividend Shares
Some of the key features of 10% dividend shares include:
- Fixed dividend: The holders of 10% dividend shares are entitled to receive a fixed dividend of 10% of the face value of the share every year.
- No preference for repayment of capital: These shares do not have any preference for repayment of capital. This means that in case of winding up of the company, the holders of 10% dividend shares will not have any preference over other shareholders in terms of repayment of capital.
- Preference for payment of arrear of dividend: However, these shares have a preference for payment of arrear of dividend at the time of winding up. This means that if the company has not paid the fixed dividend to the holders of 10% dividend shares for one or more years, then such arrears of dividend will be paid to them before any payment is made to other shareholders.
- Right to participate in surplus profit: The holders of 10% dividend shares also have the right to participate in surplus profit every year. This means that if the company earns any profit after paying the fixed dividend to the holders of 10% dividend shares, then such surplus profit will be distributed among all shareholders, including the holders of 10% dividend shares.
Conclusion
To summarize, 10% dividend shares are a type of equity shares that entitle the holders to receive a fixed dividend of 10% of the face value of the share every year. While these shares do not have any preference for repayment of capital, they have a preference for payment of arrear of dividend at the time of winding up. The holders of 10% dividend shares also have the right to participate in surplus profit every year.
10% dividend shares refer to a type of equity shares that entitle the holders to receive a fixed dividend of 10% of the face value of the share every year. These shares do not have any preference for repayment of capital, but they have a preference for payment of arrear of dividend at the time of winding up.
Features of 10% Dividend Shares
Some of the key features of 10% dividend shares include:
- Fixed dividend: The holders of 10% dividend shares are entitled to receive a fixed dividend of 10% of the face value of the share every year.
- No preference for repayment of capital: These shares do not have any preference for repayment of capital. This means that in case of winding up of the company, the holders of 10% dividend shares will not have any preference over other shareholders in terms of repayment of capital.
- Preference for payment of arrear of dividend: However, these shares have a preference for payment of arrear of dividend at the time of winding up. This means that if the company has not paid the fixed dividend to the holders of 10% dividend shares for one or more years, then such arrears of dividend will be paid to them before any payment is made to other shareholders.
- Right to participate in surplus profit: The holders of 10% dividend shares also have the right to participate in surplus profit every year. This means that if the company earns any profit after paying the fixed dividend to the holders of 10% dividend shares, then such surplus profit will be distributed among all shareholders, including the holders of 10% dividend shares.
Conclusion
To summarize, 10% dividend shares are a type of equity shares that entitle the holders to receive a fixed dividend of 10% of the face value of the share every year. While these shares do not have any preference for repayment of capital, they have a preference for payment of arrear of dividend at the time of winding up. The holders of 10% dividend shares also have the right to participate in surplus profit every year.
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A company issued 10% dividend shares with right to participate in surp...
Equity shares
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A company issued 10% dividend shares with right to participate in surplus profit every year. Though these shares does not have preference of repayment of capital but they have preference of payment of arrear of dividend at the time of winding up. These shares are?
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A company issued 10% dividend shares with right to participate in surplus profit every year. Though these shares does not have preference of repayment of capital but they have preference of payment of arrear of dividend at the time of winding up. These shares are? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A company issued 10% dividend shares with right to participate in surplus profit every year. Though these shares does not have preference of repayment of capital but they have preference of payment of arrear of dividend at the time of winding up. These shares are? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company issued 10% dividend shares with right to participate in surplus profit every year. Though these shares does not have preference of repayment of capital but they have preference of payment of arrear of dividend at the time of winding up. These shares are?.
A company issued 10% dividend shares with right to participate in surplus profit every year. Though these shares does not have preference of repayment of capital but they have preference of payment of arrear of dividend at the time of winding up. These shares are? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A company issued 10% dividend shares with right to participate in surplus profit every year. Though these shares does not have preference of repayment of capital but they have preference of payment of arrear of dividend at the time of winding up. These shares are? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company issued 10% dividend shares with right to participate in surplus profit every year. Though these shares does not have preference of repayment of capital but they have preference of payment of arrear of dividend at the time of winding up. These shares are?.
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