Question

DIVIDEND INTEREST

Answer 1

S.R.	DIVIDEND	INTEREST
1	Meaning Monetary return offered to shareholders is known as dividend	Monetary return offered to creditors (i.e.) Debenture holders) is known as interest.
2	Rate Dividend is paid a fixed rate to preference shareholders and at the fluctuating rate to equity shareholders.	Interest is paid a fixed rate.
3	Rate Dividend is paid a fixed rate to preference shareholders and at the fluctuating rate to equity shareholders.	Interest is always paid irrespective of the profit earned by the company.
4	Priority in Payments The dividend is paid after paying interest to creditors.	Interest is paid with the highest priority i.e. before paying the dividend.
5	Interim Payment Board of directors can declare interim dividends if authorized by Articles of Association.	There is no interim dividend. It is paid as per the terms.