Shares with a fixed rate of dividend that entitle their holders to priority payment over those who hold ordinary shares of a company are called

A bear
B bull
C shareholder
D preference shares

Correct Answer: preference shares

Shares with a fixed rate of dividend that entitle their holders to priority payment over those who hold ordinary shares of a company are called preference shares. Preference shares are the shares which promise the holder a fixed dividend, whose payment takes priority over that of ordinary share dividends.
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Related Questions

A company wishes to pay out all available profits as dividends. Net profit is Tk. 26,600. There are 20,000 preference shares of Tk. 1 each with dividend at a rate of 8% and 50,000 ordinary shares of Tk. 1 each. Tk. 5000 is to be transferred to General Reserve. What ordinary dividends are to be paid in percentage?
A 40
B 35
C 30
D 45
A company wishes to pay out all available profits as dividends net profit is TA. 26,600 . There are 20,000 Preference shares of TA. I each with dividend at a rate of 8% and 50,000 Ordinary shares of TA. I each . Tk.5,000 is to be transferred to General Reserve. What Ordinary dividends are to be paid , in perc
A 60 percent
B 40 percent
C 20 percent
D 10 percent
A company wishes to pay out all available profits as dividends. Net profit is TA. 26,600. There are 20,000 Preference shares of TA. I each with dividend at a rate of 8%, and 50,000 Ordinary shares of TA. I each, Tk, 5,000 is to be transferred to General Reserve. What Ordinary dividends are to paid, in percentage?
A 60%
B 40%
C 20%
D 10%
The preference shares holders who have no claim for the arrears of dividend are _________ preference shares.
A Cumulative
B Non-cumulative
C Redeemable
D Irredeemable
A company declares a 40% stock dividend when there are 4.0 million common shares outstanding with a Tk.1 per value. Their current market price is Tk. 20 per share. Which of the following will be the effect of the stock dividend ?
A Retained earnings will decrease by Tk. 1.6 million and contributed capital will increase by Tk 1.6 million.
B Contributed capital will decrease by Tk 1.6 million and retained earnings will increased by Tk. 1.6 million
C Retained earnings will decrease by Tk. 32 million and contributed capital will increase by Tk. 32 million
D Contributed capital will decrease by Tk. 32 million and retained earnings will increase by Tk. 32 million
The preferred stock of Jay's Comics currently sells for Tk. 23.25 per share. The annual dividend of Tk. 1.50 is fixed. Assuming a constant dividend forever,what is the rate of return on this stock ?
A 3.49 percent
B 6.45 percent
C 8.06 percent
D 8.50 percent
The ratio of the number of boys and girls in a school is 3:2. If 20% of the boys and 25% of the girls are scholarship holders, what percent of the students are not scholarship holders?
A 56
B 70
C 78
D none of these
A man buys Tk. 50 shares in a company which pays 10% dividend. If the man gets 12.5% on his investment, at what price did he buy the shares?
A Tk. 37.50
B Tk. 40
C Tk. 48
D Tk. 52
Ali bought 500 shares of company X at Tk. 600 and 2 months later bought another 250 shares of the same company at Tk. 560. At which price should he purchase additional 250 shares in order to have an average price of Tk. 580 per share?
A 600
B 580
C 560
D 570
Type of preferred stock whose dividend payments are never paid to stock holders and are not considered in in arrears is classified as
A non-participating preferred stock
B participating preferred stock
C non-cumulative preferred stock
D cumulative preferred stock

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