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What is the significance of issuing redeemable preference shares?
  • a)
    It reduces the need for equity shares.
  • b)
    It ensures a fixed dividend to preference shareholders.
  • c)
    It increases the company's total capital.
  • d)
    It stabilizes share prices by discouraging speculation.
Correct answer is option 'B'. Can you explain this answer?
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What is the significance of issuing redeemable preference shares?a)It ...
Redeemable preference shares assure preference shareholders of a fixed dividend, which makes them an attractive source of capital for the company.
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What is the significance of issuing redeemable preference shares?a)It reduces the need for equity shares.b)It ensures a fixed dividend to preference shareholders.c)It increases the company's total capital.d)It stabilizes share prices by discouraging speculation.Correct answer is option 'B'. Can you explain this answer?
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