Question
A company issued 10% Preference shares of the face value of Rs 10,00,000 the floatation cost being 5%. The maturity period is 5 years and
A company issued 10% Preference shares of the face value of Rs 10,00,000 the floatation cost being 5%. The maturity period is 5 years and the premium on redemption is 20%. Assume a 15% dividend tax is payable. Calculate the cost of the Preference shares using YTM.
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Financial Reporting And Statement Analysis A Strategic Perspective
Authors: Clyde P. Stickney, Paul Brown
4th Edition
0030238110, 978-0030238116
