Plz help in this one
Dear Student,
Here is your answer,
Ans(7) Preference shares resembles features of both Debentures and equity as it is has preference over equity shareholders. and a fixed percentage of return is provided to preference shareholders, In other words we can say that it is a hybrid of both debentures and equity shares.
Ans (8) Debentures do not dilute the control of equity shareholders because Debenture holders are creditors of the company where as equity shareholders are the owners of the company , so when people purchases more debentures ownership do not transfers.
Regards.
Here is your answer,
Ans(7) Preference shares resembles features of both Debentures and equity as it is has preference over equity shareholders. and a fixed percentage of return is provided to preference shareholders, In other words we can say that it is a hybrid of both debentures and equity shares.
Ans (8) Debentures do not dilute the control of equity shareholders because Debenture holders are creditors of the company where as equity shareholders are the owners of the company , so when people purchases more debentures ownership do not transfers.
Regards.