9. A company is planning to issue 14% perpetual preference shares with face value of `100 each....
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● 9. A company is planning to issue 14% perpetual preference shares with face value of `100 each. Flotation cost is estimated to be 4%. Compute the (i) cost of preference shares if they are issued at
(a) face value,
(b) 10% premium and
(c) 5% discount and (ii) compute the cost of preference share under these conditions assuming 5% dividend tax.
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Related Book For
Financial Management
ISBN: 9789352605606
1st Edition
Authors: Swapan Sarkar, Bappaditya Biswas, Samyabrata Das, Ashish Kumar Sana
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