Participation Features

Preference capital may be participating entitling participation profits, if any, that is, profits after payment of preference dividend and equity dividend at a certain specified. Similarly, it may be entitled to participate in the residual assets after the their normal claim according to a specific formula in the event of liquidation of the company.

Evaluation

Preference capital as a source of long-term financing, has merits ami dements from the view of the investors shareholders as well as the company.

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