Economics · Cost of Capital
Which of the following statements about preference shares is TRUE?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Preference shareholders have voting rights
- 2The cost of preference shares equals the dividend divided by market price✓
- 3Preference shares have lower risk than debt
- 4Preference dividends are tax-deductible
Correct answer
The cost of preference shares equals the dividend divided by market price
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