The CEO of MXW, a two-year old company, owns all of its ordinary shares. MXW is yet to make a profit. Expansion plans require new finance but due to the lack of suitable assets to offer as security, debt is not being considered. Surplus cash is not going to be available to repay capital for the foreseeable future as MXW continues to grow. The CEO wants to retain control and is keen to pay a fixed annual return to investors once profits are generated. It has been suggested that preference shares would be the most appropriate form of finance, but the founder is unsure which type to issue. Which type of preference share would meet the CEO's requirements? Solution A.Cumulative redeemable preference shares. B.Non-cumulative irredeemable preference shares. C.Participating preference shares. D.Convertible preference shares