alleryStart learning →Preference shares usually rank for dividend payment:
AAfter equity shares
BBefore equity shares
CEqually with debentures
DOnly on liquidation
Answer & Solution
Correct answer: B. Before equity shares
Dividends on preference shares must be paid before or with dividends on common shares.
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Related questions
Investors were historically given what as evidence of share ownership?Putable preference shares let the holder, in some conditions, to:On liquidation, a preference share's claim is relative to common stock:Most preference shares carry which voting position?Convertible preference shares can be exchanged by holders for:Non-cumulative preference dividends, if unpaid in a year:A cumulative preference share means unpaid dividend will:If profits stay the same, a buy-back tends to raise which measure?