A limited company obtained finance by selling ordinary shares, preference shares and debentures. Which of the following statements are true? 1 Debentures form part of loan capital. 2 Ordinary shares belong to the equity. 3 Ordinary dividend is paid before debenture interest is paid. 4 Preference shares provide a fixed rate of dividend.
- A1, 2 and 3
- B1, 2 and 4
- C2, 3 and 4
- D3 and 4 only