Question
14. Which one of the following statements best describes a cumulative preference share? (A) It has the right to be converted into ordinary shares at
14. 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 entitles the shareholder to a fixed rate of dividend.
(D) It carries forward to the next year the right to receive unpaid dividends.
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Handbook Of The Fundamentals Of Financial Decision Making
Authors: Leonard C MacLean, William T Ziemba
1st Edition
9814417343, 978-9814417341
