Question

company
ishares of
discount of
I 2000
Lescice 1000 10% Preference
3 100 each at a discount
51 Cost of raicing capital
are I
Compute the cost of Preference Capital.
(6) Assume that the firm pays tax at 50%
Compute the after tax cost of capital of
a preferred share sold at 2 100 noith a 9%
dividend and a redemption price of F 110.
if the company redeems it in syears​

Answer 1

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