difference between Equity Capital and Preference capital?
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Answer Posted / suresh
preference share holders take dividends constantly some
amount.eqity capital is capital of owners
preference capital was not owners capital they borrow some
money from out side of the organisation.
preference share holders have some limit period to earn
dividend but equit share holders doesnot have specifis
time.
from the profit we will give the dividend to preference
capital holders
after giving devidend to preference share
holders,remaining they will share remaining income or
liability .
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