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A company issues a share that has a par value of 100.00 and pays a fixed dividend of 2.0% annually? What type of share is this?
Suggested Answer: D
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16 comments · newest first
ED
Edelmira
10 months ago
Wait, are we sure it's not a cumulative share?
FE
Felix
11 months ago
I agree, preference shares are the way to go for fixed dividends.
LA
Lashon
11 months ago
I thought deferred shares were more common for fixed dividends.
LY
Lynsey
11 months ago
Nope, it's preference for sure. Cumulative shares have different rules.
GA
Gail
11 months ago
It's definitely a preference share. Fixed dividends are a giveaway!
RE
Renea
11 months ago
I'm a bit confused about the difference between cumulative and preference shares. Does the fixed dividend indicate it's preference?
GE
German
12 months ago
This question feels familiar; I think we did a similar one in class. I believe the answer is preference share too.
MI
Micheal
1 year ago
I remember studying that preference shares typically have fixed dividends, so I'm leaning towards option D.
OL
Oliva
1 year ago
I think this might be a preference share since it pays a fixed dividend, but I'm not entirely sure.
NI
Nilsa
1 year ago
I'm a little confused by this question. The fixed dividend makes me think it could be a preference share, but I'm not totally sure. I'll have to review my notes on the different share types to make sure I'm selecting the right answer.
RA
Raylene
1 year ago
Okay, let me break this down. A fixed dividend of 2.0% on a par value of 100.00 - that sounds like a preference share to me. The key is the fixed dividend payout, which distinguishes it from an ordinary share. I feel good about selecting option D.
SE
Sean
1 year ago
Hmm, I'm a bit unsure about this one. The fixed dividend makes me think it could be a preference share, but I'm not totally confident. I'll have to think it through carefully.
BE
Bernardine
1 year ago
This seems like a straightforward question about share types. I'll focus on the key details - the share has a par value of 100.00 and pays a fixed 2.0% dividend annually. That sounds like a preference share to me.
KR
Kris
1 year ago
I agree with Rory, because preference shares usually have fixed dividends.
BR
Britt
1 year ago
Hmm, a fixed dividend of 2% on a par value of 100? That sounds like a preference share to me. I bet the company is trying to lure in some risk-averse investors with this one.
RO
Rory
1 year ago
I think the answer is D) Preference share.