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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Financial Management

ISBN: 9789352605606

1st Edition

Authors: Swapan Sarkar, Bappaditya Biswas, Samyabrata Das, Ashish Kumar Sana

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