Carlton Investment Ltd has issued preference shares. On that date the preference share price was $2.05, the annual dividend was $0.14. Calculate the cost for Carltons irredeemable preference share.

	a.	The cost for Carltons irredeemable preference share is 6.83% per annum.
	b.	The cost for Carltons irredeemable preference share is 14.64% per annum.
	c.	None of the other answers are true.
	d.	The cost for Carltons irredeemable preference share is 28.7% per annum.

Kpref = d/p0

d = preference dividend

P0 = market value of preference shares

all the answers says .... .14/2.05

but its p/d ... making it 2.05/.14?