where is the 0.5 come from ?

How can i find it ?

by 8 per cent for the next 2 years and by 2per eerit thelelilel, in the u to increase of Two-Stage Rocket's ordinary shares is $17.80, what is the cost of ordinary equity capital for the company? 13.10 Cost of preference shares: Fjord Luxury Liners has preference shares outstanding that pay an annual dividend equal to $15 per year. If the current price of Fjord Luxury Liners pref erence shares is $107.14, what is the after-tax cost of preference shares for Fjord Luxury Liners? 13.11 Cost of preference shares: Kresler Autos has preference shares outstanding that pay annual dividends of $12, and the current price of the shares is $80. What is the after-tax cost of new Ans: Cost of preference shares(kp) is calculated as below: Kp(Before tax) - Preferencial dividend/Market price of the share Preferencial dividend-$15 Market price of the share- $107.14 Kp= $15/$107.14 Kp(before tax)-0.14 or 14% Kp(After tax) = Kp(before tax) (1 -Tax rate) Kp - 0.14 x (1 -0.50) Kp(After tax) 0.07 or 7% Note: In the given case rate of tax was not given, So it is assumed as 50% Thank you, Feel free to comment incase of further help