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The dividend is paid first to ______ shareholders. - Secretarial Practice

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Question

The dividend is paid first to ______ shareholders.

Options

  • Equity

  • Preference

  • Deferred

MCQ
Fill in the Blanks
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Solution

Dividend is paid first to preference shareholders.

Explanation:

The holder of a preference share has a prior right to receive a fixed rate of dividend before any dividend is paid to equity shares. The issuer prescribes the dividend rate.

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Sources of Owned Capital - Shares
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Chapter 10: Dividend and Interest - Exercises [Page 151]
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