Interested to Buy Any Domain ? << Click Here >> for more details...
DIFFERENCE BETWEEN EQUITY SHARE CAPITAL & PREFERENCIAL SHAR
CAPITAL
- 7 Answers
- 20412 Views
- I also Faced
- E-Mail Answers
Answer Posted / anuj arora
Major Difference between Equity and Preferencial Share
capital.
1)Voting rights
Equity share holders: Yes
Preference Share holders: No
Equity share holders are having ownership and voting rights.
They make a decision to through his voting rights
2)Dividend
Equity shareholder may get dividend after geting prefernce
share holders.so company gives preference to shareholder
thats why we call as a preferencial shareholders.
Eg: PS look like this way: 15% Preferencial share capital
15% is the dividend.
3)At the time of liquidation
At the time of liquidation preference shareholder get back
the money from the company rather than equity shareholders.
4)Redeemable and convertiable.
Preference share capital can be redeemed and covertable as
a equity shares and debentures .But equity share capital
cann't be redeemable and convertable as a shares.
5)Equity Shareholders take more risk as compared to
preference shareholder, they carry fixed rate of dividend
i.e. if company is earning profit then it will distribute
the dividend at that fixed rate to prefernce shareholders
and then the remaining profit are distributed among equity
shareholders
| Is This Answer Correct ? | 9 Yes | 1 No |
Post New Answer View All Answers
STATE THE DIFFERENCE BETWEEN BANKING FIS AND NON BANKING FIS
Income Tax Department sends cheque for INR 2 Crore as Refund after completion of Assessment for A.Y.2011 - 2012 to a Company. As per IT Return filed for this year I.T. due to Government was INR 60 Lac but was assessed at INR 70 Lac. TDS due to Company was INR 3 Crore which was admitted as INR 2.7 Crore by Government. Government also adjusts Tax dues for A.Y. 2009 - 2010 of INR 40 Lac which was disputed earlier by the Company and Appeal was lying with the CIT. Government pays Interest to the Company amounting to INR 40 Lac. Provision for Income Tax made by the Company in its accounts for F.Y. 2010 - 2011 (A.Y. 2011 - 2012) was INR 50 Lac. What would be the Journal Entry at the time of receipt of Refund of INR 2 Crore from the Government in A.Y. 2014 - 2015 in the books of the Company?
Occasionally it is said that issuing convertible bonds is better than issuing stock when the firms shares are undervalued. Suppose that the financial manager of Decent Furniture Company does in fact have inside information indicating that the decent stock price is too low. Decent furniture earnings will in fact be higher than investor’s expectations. Suppose further that the inside information cannot be released without giving away a valuable competitive secret. Clearly, selling shares at the present low price would harm Decent’s existing shareholders. Will they also lose if convertible bonds are issued? If they do lose in this case, is the loss more or less than it would be if common stock is issued? Now suppose that investors forecast earnings accurately, but still under value the stock because they overestimate Decent’s actual business risk. Does this change your answer to the questions posed in the preceding paragraph? Explain.
Does provisions need to be subtracted from reserves if net worth is calculated on the basis of share capital based method
STATE & EXPLAIN THE IMPACT OF GLOBAL FINANCIAL CRIS ON CEMENT SECTOR IN INDIA:
what is the abrevation for JJ in form jj
what is rate of service tax and form no. of service tax ? wt rules of service tax a particuler once .?
How does a bank or financial institution calculate COGS? What are the 'direct' costs of a loan or deposit revenue operation?
what is mean by tax holiday?
when will be appsc exams will held pls give me the dates
In the case of Internal Reconstruction of company Accrued Int. On debenture / Outstanding int. On debenture transfer or not in capital reduction a/c . Explain
I am Simrat Kaur. I am persuing graduation from P.U. I have an experience of 14 months as a CSA. But i hav an experience letter of 6 months.But I can show my joinin letter of the other job. I hav knowledge of basics of computer & internet. Actually, m findin job in chandigarh. I am findin the right opportunity. so, Can u plz help me in findin the right job?? Can u plz tel me abt where interviews r goin on?
analyses of Cost control
Is form 38 mandatory to issue c form in up. thru online mode
I want to validate Customer credit payment with customer invoice, When billing time, the system check the customer credit payment, if customer credit is lesser than customer bill, system should not allow the billing further process. Can I configure in sap
