Which of the following attracts a fixed rate of dividend?
Answer Details
Preference shares attract a fixed rate of dividend. This means that the dividend paid on preference shares is predetermined and fixed, and it is paid out before any dividends are paid to ordinary shareholders. The fixed dividend rate on preference shares is usually expressed as a percentage of the face value of the shares. In contrast, dividends paid on ordinary shares may vary depending on the company's profits and other factors, and they are not fixed.