Mathematics · Cost of Preference Capital
A company issues 12% preference shares with a face value of ₹500 each. The net proceeds after floatation costs are ₹480 per share. These shares are redeemable at par after a period of 5 years. What is the approximate cost of redeemable preference capital (Kp) for the company?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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Correct answer
13.06%
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