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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Preference shares
Sir if an investor has 51% in a firm but he has the right to receive only fixed return whether the the return of the company earns less or more and also doesnt control the return of that firm.
So is it necessary that we will always treat that 51% as debt under the head of preference shares?
Definitely debt
Investee has obligation to deliver cash
No need to call it ‘preference shares’
