Question
Calculate the cost of preference capital (k p ) for a non-redeemable preference share which has the following: Price = $16 and a Preference dividend
Calculate the cost of preference capital (kp) for a non-redeemable preference share which has the following:
Price = $16 and a Preference dividend of $1.8paid every six months. Your answer should the effective annual cost as adecimal accurate tofour decimal places.For example an answer of 12.113% should be entered as .1211 with no % sign.
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Financial Management for Public, Health and Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
5th edition
1506326846, 9781506326863, 1506326862, 978-1506326849
