A debentureholder is entitled to :
fixed dividend
share in profits
voting rights in the company
interest at the fixed rate
A debenture holder is entitled to interest at the fixed rate.
Payment of fixed rate of dividend to preference shares may enable a company to declare higher rates of dividend for the equity shareholders in good times.
Differentiate between equity shares and preference shares on the basis of :
(a) Payment of dividend
(b) Refund of capital
(c) Rate of dividend
(d) Voting Rights
Under which head the following items of a financial company will be shown :
(i) Dividend received (ii) Interest earned (iii) Profit on sale of fixed asset and (iv) Profit on sale of investments, and (v) Refund of Income Tax.