Tulip Co - March/June 2019

Hi, Question 19 Which of the following statements about equity finance is correct? A.Equity finance reserves represent cash that is available to a company to invest B.Additional equity finance can be raised by rights issues and bonus issues C.Retained earnings are a source of equity finance D.Equity finance includes both ordinary shares and preference shares Why is D not correct? The question did not mention about whether the preference shares are redeemable or irredeemable. So, I thought we should always assume it is irredeemable unless being told otherwise. If it is irredeemable then it should be equity, right? Both C and D are correct? Answer given is C only.