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The type of business finance that entitles the holder to a fixed rate of dividend...

Economics
JAMB 1989

The type of business finance that entitles the holder to a fixed rate of dividend is?

  • A. perferred stock
  • B. common stock
  • C. debenture stock
  • D. bank loan
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Correct Answer: Option A
Explanation

Preferred stock gives owners a fixed dividend – usually set as a percentage of the stock's face value (like 6% preferred stock pays 6% of the original value each year).


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