Question
Rishi ltd. has issued 1,000, 9 % Preference Shares of Rs. 100 each at Rs. 95 per share. The floatation charges are underwriting commission 2%,
Rishi ltd. has issued 1,000, 9 % Preference Shares of Rs. 100 each at Rs. 95 per
share. The floatation charges are underwriting commission 2%, brokerage 0.5% and
printing Rs. 500. The company is subject to tax rate of 50%.Find out the cost of
capital after tax and before tax.
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Financial Accounting
Authors: Jeffrey Waybright, Robert Kemp, Sherif Elbarrad
2nd Canadian edition
133375536, 9780133845396, 133845397, 978-0133375534
