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Give the Similarities between Debt and Preference Share Capital

      

Give the Similarities between Debt and Preference Share Capital

  

Answers


Kavungya
a) Both have fixed returns.
b) Both will increase the company’s gearing ratio.
c) Both are usually redeemable.
d) Both do not have voting rights.
e) Both may force the company into receivership
f) Both have superior claims over and above owners.
g) Both are external finances.
h) There is no growth with time.
Kavungya answered the question on March 11, 2019 at 13:33


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