Virginia Tutoring Programme - VTP

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We are back again, and this time for good.

We still offer help with Accounting and Mathematical Literacy, only that this time it's R50 per month per subject for Grade 10,11 and 12..

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Meaning of Redeemable Preference Shares with Key Explanations

Preference shares can be in several forms. This depends on the purpose of such shares. And the decision of the board of directors. For redeemable preference shares, the aid is to redeem or call back the shares.

What are redeemable preference shares?

A type of preference shares where the issuing company has the right to redeem the shares at any time or a date agreed by the Board of Directors.

It can also be defined as shares with callable options upon the board of directors' decision.

Key Explanations

These shares have similar features with other preference shares. It attributes are:

Fixed dividend. The dividend is fixed. For example, a 6% 10000 redeemable preference shares @ N1 each. The coupon rate is 6 per cent. Meaning the entity can pay a total of 600 Naira as a dividend. This means that 600 Naira will be paid every year by the issuing company.

Continue reading: https://sbaccounting.com.ng/meaning-of-redeemable-preference-shares-with-key-explanations/