Question

To whom dividend is given at a fixed rate in a company?

Options

• To equity shareholders

• To preference shareholders

• To debentureholders

• To promoters

Answer 1

To preference shareholders

Explanation:

Preference shareholders receive dividends at a fixed rate, which is one of their key characteristics. Equity shareholders receive variable dividends, debentureholders receive interest (not dividends), and promoters do not have a fixed rate of dividend entitlement.