The type of business finance that entitles the holder to a fixed rate of dividend is______________--
The correct answer is C. preferred stock
The type of business finance that entitles the holder to a fixed rate of dividend is Preferred Stock.
Preferred stockholders have a higher claim on dividends than common stockholders, and these dividends are typically fixed.
This means that the company must pay the dividends to preferred stockholders before any dividends can be paid to common stockholders. However, preferred stockholders usually do not have voting rights in the company.
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