The advantages are:
1- dividends do not have to be paid in a year in which profits are weak , while this is not the case with interest payments on long-term debts.
2- Since they do not carry voting rights they avoid diluting the control of existing shareholders.
1- dividends do not have to be paid in a year in which profits are weak , while this is not the case with interest payments on long-term debts.
2- Since they do not carry voting rights they avoid diluting the control of existing shareholders.