Daniel owns preference shares of a company that has earned great profits this year. What can Daniel expect to receive from the company this year?

A

higher rate of dividend compared with the amount received last year

B. equal share of profit with the owner of the company

C. right to elect a member of the company's board of directors

D.

same rate of dividend as received last year

E

position among the company's board of directors

Question

Business

Elian Simon

Yesterday, 03:48

Daniel owns preference shares of a company that has earned great profits this year. What can Daniel expect to receive from the company this year?

A

higher rate of dividend compared with the amount received last year

B. equal share of profit with the owner of the company

C. right to elect a member of the company's board of directors

D.

same rate of dividend as received last year

E

position among the company's board of directors

+2

Answers (1)

Know the Answer?

Harry James · Answer 1

D. same rate of dividend as received last year

Explanation:

The preference stock gives the privileged to be the first investor paid but not to have a higher percentage of dividend, actually most preferred stocks have fixed dividends.