Similarities between preference share capital and debt, Finance Basics

Similarities between Preference Share Capital and Debt

Similarities between Preference Share Capital and Debt are as follows:

a) Both have fixed returns.

b) Both do not contain voting rights.

c) Both are generally redeemable.

d) Both will amplify the company's gearing ratio

e) Both are external finances

f) Both have superior claims above and over owners.

g) Both may force the company into receivership.

h) There is no growth along with time.

 

Posted Date: 1/29/2013 4:43:08 AM | Location : United States







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

Write discussion on Similarities between preference share capital and debt
Your posts are moderated
Related Questions
challenges your likely to face when apparising a project on the implemtation stage

Define the process of Opening an Account with Broker After a broker has been selected, the investor has to place an order on the broker. The broker will open an account in t

The price of bread is $0.50 per pound, and the price of butter is $0.25 per ounce. Channing spends all of her income, buying 12 pounds of bread, 7 ounces of butter, and nothing els

Present Value of Uneven Periodic Sum - DCF Technique As in investment decisions it is very rare to acquire even periodic returns and in most cases a company will generate a st


Question: A deferred annuity policy is sold to a life aged 45 with the following benefits: • Basic payments start at $30,000 from age 65, increasing by $2,000 each year; •

hello

Your daughter is a beginning freshman in high school. By the time she enters her freshman year in college, you would like to have savings accumulated to pay her tuition for her nex

what is the importance of public expenditure

Discuss business taxes and their importance in financial decisions