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

  • A preference stock
  • B common stock
  • C debentures
  • D bank loan
jamb 2020economics

The correct answer is A. preference stock

The type of business finances that entitles the holder to a fixed rate of dividend is preference stock.

Preference shares give investors a fixed dividend from the company’s earnings and entitle them to be paid before common shareholders.

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