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Preference Share Capital or Quasi-Equity
It is also called quasi-equity because it combines features of equity and those of debt. It is preference because it is preferred to ordinary share capital that is:
i) It is paid asset proceeds first - preferred to assets.
ii) It is paid dividends first - preferred to dividend
Dissimilar ordinary share capital, such has a fixed return. It carries no voting rights. It is an unsafe finance and it increases the company's gearing ratio.
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What are the differences b/w bone and cartiledge
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