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Calculate the Cost of Capital from the following cases: 0 10-year 14% Preference shares of 3100, redeemable at premium of 5% and fotation costs 7.
Calculate the Cost of Capital from the following cases: 0 10-year 14% Preference shares of 3100, redeemable at premium of 5% and fotation costs 7. Dividend text 10%. (i) An equity share selling at 350 and paying a dividend of 36 per share, which is expected to continue indefinitely (i) The above equity share it dividends are expected to grow at the rate of 5%. (V) An equity share of a company is selling at 3120 per share. The earnings per share is 820 of which 50% is paid in dividends. The shareholders expect the company to earn a constant after tax rate of 10% on its investment of retained earnings
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