Distinguish between: a) Equity shares and Preference share b) Net income approach and net operating income approach
a) Equity Shares vs. Preference Shares Point of Difference Equity Shares Preference Shares Ownership Represents ownership in the company with voting rights No ownership rights; generally no voting rights Dividend Paid after preference shareholders; not fixed Fixed rate of dividend paid before equity holders Repayment Repaid after all liabilities in case of liquidation Priority in […]