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Which statement about preference shares is correct?

  1. A They typically carry a fixed dividend and rank ahead of equity shares in liquidation
  2. B They always carry full voting rights
  3. C They rank behind unsecured creditors and equity shares
  4. D They must be redeemed within one year
Answer

They typically carry a fixed dividend and rank ahead of equity shares in liquidation

Preference shares sit between debt and equity, receiving a fixed dividend before equity holders but usually without voting rights.

All Finance MCQs

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