Discussion Forum : Sources Of Business Finance
Question -


Payment of fixed rate of dividend to preference shares may enable a company to declare higher rates of dividend for the equity shareholders in good times.

Options:
A .   True 
B .   False
C .   Retaining earnings
D .   All of the above
Answer: Option A
:
A

True. Payment of fixed rate of dividend to preference shares may enable a company to declare higher rates of dividend for the equity shareholders in good times.



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