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Give the Similarities between Preference and Equity Finance

Give the Similarities between Preference and Equity Finance

Answers

Kavungya
a) Both may be permanent if preference share capital is irredeemable (convertible).
b) Both are naked or unsecured finances.
c) Both are traded at the stock exchange
d) Both are raised by public limited companies only
e) Both carry residue claims after debt.
f) Both dividends are not a legal obligations for the company to pay.
Kavungya answered the question on March 11, 2019 at 13:32

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