Holders of 'Participating' Preference Shares Are Entitled To

question 8

Multiple Choice

Holders of 'participating' preference shares are entitled to:

• A) have their share price track the stock market index.
• B) receive shares at no extra cost.
• C) share in any ordinary dividend that is paid above and beyond their guaranteed minimum dividend.
• D) sell their shares back to the company at a future time.

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Definitions:

Average Total Cost

The complete expense of manufacturing (encompassing both fixed and variable expenditures) divided by the overall amount of goods produced.

Output

The quantity of goods or services produced by a firm, industry, or economy within a certain period.

Per-Unit Cost

The cost associated with producing one unit of a product, calculated by dividing total production costs by the number of units produced.

Diseconomies of Scale

The situation where a company or business grows so large that the costs per unit increase, typically due to inefficiencies.