Question
1. Preference capital, 10 percent (800,000 shares, 100 par) = 80 million Preference stock, redeemable after 8 years, is currently selling for Rs.90 per share.
1. Preference capital, 10 percent (800,000 shares, 100 par) = 80 million
Preference stock, redeemable after 8 years, is currently selling for Rs.90 per share. The tax rate for the company is 34 percent.
Calculate the cost of preference share capital?
2. Preference capital, 15 percent = 100 million (1,000,000 shares, 100 par)
Preference stock, redeemable after 6 years, is currently selling for Rs.110 per share. The tax rate for company is 35%
Calculate the cost of preference share capital?
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Financial Reporting And Statement Analysis A Strategic Perspective
Authors: Clyde P. Stickney, Paul Brown
4th Edition
0030238110, 978-0030238116
