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WAEC Commerce 2007 Question 15

Question 15

Business Finance

Which of the following gets extra dividend after its due fixed rate of dividend?

  1. A.Preference shares
  2. B.Cumulative preference shares
  3. C.Ordinary shares
  4. D.Participating preference shares.
Show the answer and explanation

Answer: D (Participating preference shares.)

Explanation

Participating preference shares share in extra profits after their fixed dividend.