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How do preference shares differ from equity shares in terms of dividend payment?
  • a)
    Preference shares have a fixed rate of dividend, while equity shares do not receive any dividend.
  • b)
    Preference shares receive a variable dividend based on profits, while equity shares receive a fixed dividend.
  • c)
    Preference shares have no entitlement to dividends, while equity shares always receive a dividend.
  • d)
    Preference shares and equity shares both receive a fixed dividend.
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
How do preference shares differ from equity shares in terms of dividen...
Preference shares have a fixed rate of dividend, while equity shares do not have any guaranteed dividend.
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How do preference shares differ from equity shares in terms of dividend payment?a)Preference shares have a fixed rate of dividend, while equity shares do not receive any dividend.b)Preference shares receive a variable dividend based on profits, while equity shares receive a fixed dividend.c)Preference shares have no entitlement to dividends, while equity shares always receive a dividend.d)Preference shares and equity shares both receive a fixed dividend.Correct answer is option 'A'. Can you explain this answer?
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