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.
The African Development Bank was set up in 1964 and has its headquarters in ...
Another term for equilibrium price is? ...
Poverty simply refers to the low level of_______ ...
The foremost objective of the International Bank of Reconstruction and Development (IBRD) is to ...
The organisation of productive factors is the reponsibility of the? ...
The basic economics problem of what to produce arises as a result of ...
Which of the following is not a problem in the barter economy? ...
One of the advantages of Sole Proprietorship is that ...
The following are problems of development planning in Nigeria EXCEPT ...