Which of the following gets extra dividend after its due fixed rate of dividend
Answer Details
The type of share that gets extra dividend after its due fixed rate of dividend is participating preference shares. Participating preference shares are a type of preference shares that, in addition to receiving a fixed dividend, also have the right to participate in the company's profits above and beyond the fixed dividend rate. This means that if the company's profits exceed a certain amount, the participating preference shareholders are entitled to an additional dividend. This extra dividend is usually calculated as a percentage of the ordinary shareholders' dividend, and is paid out after the ordinary dividend has been paid.