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Which of the following best describes these shares?

Zed plc wishes to issue £500,000 of shares on terms that the holders will receive a dividend before the other shareholders and they will be bought back by the company in 12 months’ time.

Which of the following best describes these shares?
A . Ordinary shares
B . Redeemable ordinary shares
C . Preference shares
D . Redeemable preference shares

Answer: D

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