a company wishes to issue new preference shares


A company wishes to issue new preference shares; the company will incur flotation cost of 2% per share. the market value of this shares is $90 per share & a nominal value of $100 per share. They pay a dividend of 8% per annum. The company pays corporate tax of 28%. What is the cost of the preference share?

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Basic Statistics: a company wishes to issue new preference shares
Reference No:- TGS0154319

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