Differences between equity finance and preference, Finance Basics

Differences between Equity Finance and Preference

Dissimilarity between Equity Finance and Preference are as follows:

 

Ordinary share capital

 

Preference share capital

a)

b)

c)

d)

e)

f)

 

Has a residue claim both on assets and profit

Carries voting rights

Reduces the gearing ratio

Variable dividends hence grow over time

Permanent finance

Easily transferable.

a)

b)

c)

d)

e)

f)

 

Has a superior claim

No voting rights

Increases the gearing ratio

Fixed dividends hence no growth

Usually redeemable

Not easily transferable

 

Posted Date: 1/29/2013 4:41:08 AM | Location : United States







Related Discussions:- Differences between equity finance and preference, Assignment Help, Ask Question on Differences between equity finance and preference, Get Answer, Expert's Help, Differences between equity finance and preference Discussions

Write discussion on Differences between equity finance and preference
Your posts are moderated
Related Questions
A company that manufactures electrical appliances is looking at one of its lines (washing machines), where it offers three different levels of specification: Basic which sells for


I have an assignment for my finance class. The company that i have FOR industry analysis is COSTCO WHOLESALES CORP THAT ITS STOCK IS IN DISCOUNT AND VARIETY StORES INDUSTRY. I need

Type of Partnerships There are two main kinds of partnerships. Namely: Ordinary Partnership - An ordinary partnership is one in which all members have unlimited liability.

if u were the professor wht your opinion about vincent mind stage

Determinants of Required Rate of Return 1.Risk free rate - This is the interest rate such would exist on default free securities like Treasury bills and bonds. Risk free

Tests of Term Structure of Interest Rates Theories Various tests have been conducted mainly in USA and they show that all the three (3) theories have some validity and therefo

what are the difference between receipt and payment account and income and expenditure account ?

Rights of Ordinary Shareholders A. Right to vote Choose BOD Purchase/Sales of assets B. Influence decisions as: Right to residual ass

Constant DPS plus Extra or Surplus 1. Beneath this policy a constant DPS is paid every year. Nonetheless extra dividends are paid in years of supernormal earnings. 2. It prov