Question

MCO
Question 8:
Mehul Ltd issued Rs 100 lakhs 14%
Preference shares of Rs 100 each redeemable
at par after 5 years. Dividend tax rate is 20%.
Calculate cost of preference shares if the
issue is at 10% premium with 5% floatation
cost.
14.89%
14.55%
15.89%
15.55%

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Answer 1

100 of 4% = 4 is correct answer