Question
Calculate the cost of preference capital (k p ) for a non-redeemable preference share which has the following: Price = $17 and a Preference dividend
Calculate the cost of preference capital (kp) for a non-redeemable preference share which has the following:
Price = $17 and a Preference dividend of $1.5paid every six months. Your answer should the effective annual cost as adecimal accurate tofour decimal places.
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
