Which one of the following statements best describes a cumulative preference share? 

(a) It has the right to be converted into ordinary shares at a future date. 

(b) It entitles the shareholder to a share of residual profits. 

(c) It carries forward to the next year the right to receive unpaid dividends.

(d) It entitles the shareholder to a fixed rate of dividend. 

(e) It gives its holder voting rights at a company’s annual general meeting.