Which ONE of the following statements is NOT true about preference shares?
A) Preference share dividend payments are fixed obligations of the company, similar to the interest payments on corporate bonds.
B) Preference share dividends are paid from before-tax income just as the interest on bonds.
C) Preference shareholders have limited voting privileges relative to ordinary share owners.
D) While preference shares are legally classified as perpetuities, some issues do have a fixed maturity.

Question

Quizplus · Accepted Answer

Preference share dividends are paid from after-tax income, unlike the interest on bonds which is paid from before-tax income.

Which ONE of the Following Statements Is NOT True About