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