Why the company prefering prefence capitalrather than
debenture capital?
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Answer Posted / s.rudranand
prefrence capital(share) is a fixed capital or investment
to the company where the company has to pay fixed divident
to the investors.
debentures are liabilities to the company and they have to
pay fixed intrest to the holders, but it will reduce the
profits and company performance is depended on profits and
its share price, there is a posibility of fall in share
price in the market due to less profits. so, company
prefeing prefrence capital than debenture
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