Differences between debt and preference share capital, Finance Basics

Assignment Help:

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)

 


Related Discussions:- Differences between debt and preference share capital

Parties include in central depository system, Parties include In Central De...

Parties include In Central Depository System 1. Government As like for the motive of attracting foreign supporting and investors the infrastructure of capital markets.

Clientele effect theory, Clientele Effect Theory Advance via Richardso...

Clientele Effect Theory Advance via Richardson Petit in 1977.It stated such different types of groups of shareholders or clientele have different type of preferences for divid

What is nominal and real return, What is Nominal and Real Return Whi...

What is Nominal and Real Return While nominal return is the return in nominal rupees, real return is equal to the nominal return adjusted for changes in prices i.e. rate of

Non-linear Break Even Analysis, International Data Systems information on r...

International Data Systems information on revenue and costs is only relevant up to a sales volume of 100,000 units. After 100,000 units, the market becomes saturated and the price

I need help with tests, I need help with : an introduction to financial ma...

I need help with : an introduction to financial markets and institutions , 2 edition , brown, nesiba, burton

Advantagesand Disadvantages of IRR, Advantagesand Disadvantages of IRR ...

Advantagesand Disadvantages of IRR Advantages of IRR It seems time value of money It seems cash flows over the whole life of the project. It is compatible along

Managerial finance functions, Managerial Finance Functions Require ski...

Managerial Finance Functions Require skilful execution, control and planning of financial activities.  Hence there are four significant managerial finance functions. Such are

Financial cycle, what is the applicability of a financial cycle to poultry...

what is the applicability of a financial cycle to poultry?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd