Which of the following type of capital is not rewarded by...
Which of the following type of capital is not rewarded by means of dividends?
Ordinary shares
Preference shares
Cumulative shares
Participating preference shares
Debentures
Correct answer is E
In corporate finance, a debenture is a medium- to long-term debt instrument used by large companies to borrow money, at a fixed rate of interest. The legal term "debenture" originally referred to a document that either creates a debt or acknowledges it, but in some countries the term is now used interchangeably with bond, loan stock or note. A debenture is thus like a certificate of loan or a loan bond evidencing the fact that the company is liable to pay a specified amount with interest and although the money raised by the debentures becomes a part of the company's capital structure, it does not become share capital.
All the classes of shares above are rewarded with dividends. that is, if you subscribe to any of the shares, the company would pay you dividends as returns on investment, while debenture is an certificate that acknowledges a debt owed by one person to another.
When total utility is constant, it means marginal utility is ...
The coefficient of the price elasticity of supply is always ...
The most important determinant for the location of a brick industry is the availability of ...
Location of firm in rural areas may ...
What is the ratio of expenditure on health to agriculture? ...
In order to add value to Nigeria agricultural produce, there is need to ...
One of the problems facing industrial development in West African countries is ...
If the budget of the country was $7,200, how much is allocated to Education? ...
In the long run a firm will leave an industry if price ...
Which of the following is NOT a major role of OPEC in production, and marketing of petroleum? ...