Differences between debt and preference share capital, Finance Basics

Differences between Debt and Preference Share Capital

Differences between Debt and Preference Share Capital are given below:

 

DEBT

 

PREFERENCE SHARE CAPITAL

a)

b)

c)

d)

e)

 

Interest is tax allowable

Interest is a legal obligation

Debt finance is always secured

Debt finance is a pre-conditional

Has a superior claim

a)

b)

c)

d)

e)

 

Dividends are not tax allowable

Dividends are not a legal obligation

Preference is not secured finance

Is not conditional finance

Has a residue claim (after debt)

 

Posted Date: 1/29/2013 4:43:52 AM | Location : United States







Related Discussions:- Differences between debt and preference share capital, Assignment Help, Ask Question on Differences between debt and preference share capital, Get Answer, Expert's Help, Differences between debt and preference share capital Discussions

Write discussion on Differences between debt and preference share capital
Your posts are moderated
Related Questions
Partnerships - Types of Business Organisations Defination "The relationship, that exists with persons carrying on a business in common by a view of profit." Formati

Factors Affecting Share Prices The entire sorts of influences affect share prices. These influences involves as: 1. The current profit record of the company particularly th

I need to understand a practice question for exam, but I only have a partial solution. I need a more detailed solution, so can understand how to arrive at the answer. The problem

I am facing some problems in my assignment of Performance Review in finance. Can anybody suggest me the proper explanation for it?

discuss the flow of fund in an open economy

Charleston Industrial revised its dividend policy and decided that it wants to maintain a retained earnings account of $1 million. The company''s retained earnings account at the e

Cost of Retaining Finance This will contains dividends for share capital and interest for debt finance or can say tax deducted or like effective cost of debt.  Though, when co

Briefly define the terms proprietorship, partnership, and corporation. Ans: The term proprietorship is used as a business owned by one person. Two or more than two people wh

After carefully reading all the available information, prepare a two page (double-spaced) essay and answer the following questions: Assume that we have the following data: C=100+0.

Distribution Policies   Most Recent Fiscal Year Fiscal Year (-1) Fiscal Year (-2) Fiscal Year (-3)