Explanation:
Equity shareholders do not receive a fixed rate of dividend; their dividend depends on the company's profits and the decision of the board of directors.
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Question
Equity shareholders enjoy a fixed rate of dividend.
Options
True
False
MCQ
True or False
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Solution
This statement is False.
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Sources of Owned Capital - Shares
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Chapter 2: Sources of Corporate Finance - Exercises [Page 35]
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RELATED QUESTIONS
Select the correct answer from the options given below and rewrite the statement.
______ is a smallest unit in the total share capital of the company.
______ shares are issued free of cost to existing equity shareholders.
The holder of ______ preference shares has the right to convert their shares into equity shares.
______ is paid on borrowed capital.
Write a word or a term or a phrase which can substitute the following statement.
The holders of these shares are entitled to participate in the surplus profit.
Write a word or a term or a phrase which can substitute the following statement.
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State whether the following statement is true or false.
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Complete the sentence.
Bonus shares are issued as gift to ______
Correct the underlined word and rewrite the following sentence.
Preference shares get dividend at fluctuating rate.
Distinguish between the following.
Equity shares and Preference shares.
Justify the following statement.
Preference shares do not carry any voting rights.
Justify the following statement.
Different investors have different preferences.
State the features of equity shares.
Answer the following question.
Define preference shares. What are the different types of preference shares?
Give one word or phrase for the following sentence:
What is Share?
Justify the following statement.
Equity shareholder enjoys certain rights.
Explain the following term/concept in detail:
Equity shares
