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WAEC Financial Accounting 2007 Question 49

Question 49

Company Accounts

Which of the following attracts a fixed rate of dividend?

  1. A.Ordinary shares
  2. B.Founders' shares
  3. C.Preference shares
  4. D.Deferred shares.
Show the answer and explanation

Answer: C (Preference shares)

Explanation

Preference shares carry a fixed dividend rate.