Joan has inherited one million shillings from the estate of her late mother.She has decided to invest it in a small private company of which Janet and Jeffrey,her old friends are directors.However,Joan is not sure whether to lend the money to the company secured by a debenture containing a fixed and floating charge or through purchase of ordinary or preference shares.
Joan now seeks your advice on the following issues:
(a) What is the difference between ordinary and preference shares, and what rights accrue to the holders of each class of shares?(8 marks)
(b) (i) What is the return on ordinary and preference share capital?( 4 marks)
(iii) What are the restrictions that may be imposed on her ability to transfer any shares she may purchase in the Company?(8 marks)
For a custom-written paper on the above topic, place your order now!
What We Offer
• On-time delivery guarantee
• PhD-level professionals
• Automatic plagiarism check
• 100% money-back guarantee
• 100% Privacy and Confidentiality
• High Quality custom-written papers
