question_answer

Which of the following statement is true?

A)  Preference share capital together with any arrears of dividend will have priority for payment on equity capital

B)  The holders of cumulative preference shares are entitled to arrears of dividend if there is a surplus after return of equity capital

C)  Preference shares are treated as fully secured creditors

D)  If articles provides for payment of arrear of dividend, then it must be paid even by contributories if shares are partly paid