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Raj Ltd. has issued 5,000, 8% Preference shares of Rs. 100 each. The expenses of issue are: Underwriting Commission 1.5%, Brokerage 0.5%, Printing and other Expenses Rs. 10,000. Calculate Cost of capital (before tax as well as after tax) assuming the preference shares are issued at (1) par, (2) 6% discount and (3) 4% premium. The tax rate is 60%?​

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