Question

The rate of dividend that the preference share holder get is
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Answer 1

In case of preference shares, the percentage of dividend is fixed i.e. the holders get the fixed dividend before any dividend is paid to other classes of shareholders. Preference shares are one important source of hybrid financing because it has some features of equity shares and some features of debentures.

Answer 2

In case of preference shares, the percentage of dividend is fixed i.e. the holders get the fixed dividend before any dividend is paid to other classes of shareholders. Preference shares are one important source of hybrid financing because it has some features of equity shares and some features of debentures

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