5.2 (a) A company raised preference share capital of 1,00,000 by the issue of 10% preference shares of 10 each. ind out the cost of preference share capital when it is issued at (i) 10% premium, and (ii) 10% discount. (b) A company has 10% redeemable preference shares which are redeemable at the end of 10 th year from the date of issue. The underwriting expenses are expected to 2%. Find out the effective cost of preference share capital. (c) The entire share capital of a company consist of 1,00,000 equity shares of 100 each. Its current earnings are