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Question
Dividends on cumulative preference shares go on accumulating unless paid.
Options
True
False
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Solution
This statement is True.
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RELATED QUESTIONS
What are Preference Shares?
Which of the following is also known as hybrid financing?
Which of the following are the features of preference shares?
Preference shares may be ______.
Distinguish between equity shares and preference shares.
Describe the different types of preference shares.
Distinguish between cumulative and non-cumulative preference shares.
The directors of a company have decided to modernise the plants and machinery at an estimated cost of Rs. one crore, but could not decide whether to issue preference shares or debentures for this purpose. As finance manager of the company, advise the directors whether to issue preference shares or debentures in the interest of the company.
Preference shares carry preferential rights for payment of dividend and repayment of capital.
Discuss the importance of preference shares as sources of long-term finance.
