Given below at two statements, one labelled as Assertion (A) and the other labelled as Reason (R).
Assertion (A) : Preference shareholders are given a fixed rate of dividend.
Reason (R) : The preference shares have preferential right of dividend to be paid as fixed amount or an amount calculated at a fixed rate, which may either be free of or subject to income tax.
In the context of the above two statement which of the following is correct ?
1
Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explained of Assertion (A).
2
Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
3
Assertion (A) is true, but Reason (R) is false.
4
Assertion (A) is false, but Reason (R) is true.