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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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