Identify which of t

he following statements about the issue of ordinary

preference shares can be regarded as advantages to the organisation

(1) 

The control of the

organisation

(2)  Ordinary preference shares

present a lower

risk to lenders/investors and the lenders/investors therefore require a lower

return

(3)  Financial leverage

will reduce as

the number of ordinary preference shares (classified as equity) increases

without bringing about dilution for the average shareholders

(4) 

Due to withholding tax on

dividends, the company that issued the shares does not pay tax on the dividends

that were declared and paid.

(a)  Statements (1), (2) and (3)

(b)  Statements (1), (2) and (4)

(c)  

Statements

(2), (3), and (4)

(d) 

Statements (1), (2), (3) and

(4)