Achieving an Increased Return on Ordinary Shares by Paying Dividends

question 182

Multiple Choice

Achieving an increased return on ordinary shares by paying dividends on preference shares at a rate that is less than the rate of return earned with the assets invested from the preference shares issuance is called:

• A) Financial leverage.
• B) Share discount.
• C) Share premium.
• D) Preemptive right.
• E) Capital gain.

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