Which Class of Preference Shares Have the Right to Receive

question 61

Multiple Choice

Which class of preference shares have the right to receive further dividends above their fixed rate once ordinary shares have received a stated percentage?

• A) Bonus preference shares
• B) Redeemable preference shares
• C) Participating preference shares
• D) Cumulative preference shares

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Definitions:

Null Hypothesis

The null hypothesis is a statement in statistical inference that suggests there is no significant effect or no difference, serving as the default assumption to be tested.

Type I Error

The mistake of rejecting the null hypothesis when it is actually true, commonly referred to as a "false positive".

Beta

A symbol often representing the type II error rate in hypothesis testing, or a measure of risk exposure in finance.

Type II Error

A statistical error that occurs when one fails to reject a false null hypothesis.