Dividend on preference shares example sentences

The rate of dividend on preference shares is generally higher than the rate of interest on debentures.In this context, earnings refer to profit available for equity shareholders which is worked out as Profit after Tax Dividend on Preference Shares.For example, while the dividend on preference shares is not tax deductible, interest paid on debentures and loan is tax deductible and may, therefore, be preferred by organisations seeking tax advantage.