Which is not true of preference shares? *       A. Payment of dividends is mandatory if cumulative.   B. Preference shares are convertible to ordinary shares or bonds.   C. It is similar to debt financing in terms of limited cost payment.   D. Cost is higher than cost of bonds.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Which is not true of preference shares? *
 
 
 
A. Payment of dividends is mandatory if cumulative.
 
B. Preference shares are convertible to ordinary shares or bonds.
 
C. It is similar to debt financing in terms of limited cost payment.
 
D. Cost is higher than cost of bonds.
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