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ICMA FMFQ Exam - Topic 2 Question 85 Discussion

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?
D) Preference share
A) Ordinary share
B) Cumulative share
C) Deferred share

ICMA FMFQ Exam - Topic 2 Question 85 Discussion

Actual exam question for ICMA's FMFQ exam
Question #: 85
Topic #: 2
[All FMFQ Questions]

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?

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Suggested Answer: D

by Quentin at Aug 18, 2025, 02:23 AM

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Edelmira
9 months ago
Wait, are we sure it's not a cumulative share?
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Felix
9 months ago
I agree, preference shares are the way to go for fixed dividends.
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Lashon
9 months ago
I thought deferred shares were more common for fixed dividends.
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Lynsey
10 months ago
Nope, it's preference for sure. Cumulative shares have different rules.
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Gail
10 months ago
It's definitely a preference share. Fixed dividends are a giveaway!
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Renea
10 months ago
I'm a bit confused about the difference between cumulative and preference shares. Does the fixed dividend indicate it's preference?
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German
10 months ago
This question feels familiar; I think we did a similar one in class. I believe the answer is preference share too.
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Micheal
11 months ago
I remember studying that preference shares typically have fixed dividends, so I'm leaning towards option D.
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Oliva
11 months ago
I think this might be a preference share since it pays a fixed dividend, but I'm not entirely sure.
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Nilsa
11 months 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.
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Raylene
11 months 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.
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Sean
11 months 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.
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Bernardine
11 months 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.
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Kris
12 months ago
I agree with Rory, because preference shares usually have fixed dividends.
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Britt
12 months 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.
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Rory
1 year ago
I think the answer is D) Preference share.
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