Question

48. Preference dividend is to be paid before-------
A. payment of debenture interest
B. payment of income tax
C. distribution of equity dividend
D. all the above​

Answer 1

Answer:

d option is correct answer

Answer 2

The correct answer is OPTION C: distribution of equity dividend.

• Preferred dividends are cash dividends paid to preferred shareholders of a corporation.
• Preferred stock pays higher dividends than common stock of the same company.
• Because it declares all preferred dividends in advance, a business must set aside funds for future preferred dividend commitments.
• Preferred dividends must be paid out of net profits before any common share payout is considered.