Valuation of preference shares. This is a short description about it through presentation.

1. Valuation of
Preference Shares
Financial Management

2. What are
Preference Shares?
Preference shares are those which have preferential right
to the payment of dividend during the life-time of the
company and a preferential right to the return of capital
when the company is wound up.
Preference shares also have a right to participate or
in part in excess profits left after been paid to equity
shares, or has a right to participate in the premium at
the time of redemption. But these shares do not
carry voting rights.
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3. Valuation of Preference Shares
Irredeemable
Preference Share
 This type of preference share may be
treated as a perpetual security if it
have no redemption period so the
investor can get their investment
value at the time of winding up of a
company.
Redeemable
Preference Share
 This type of preference share may
have an predetermined redemption
period & redemption value so
investor can get their investment
value after an particular period..
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4. 4
Redeemable Preference
Share
Irredeemable Preference
Share

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