The company has 200 000 non-redeemable preference shares in issue with a par value R100. Preference dividends are payable annually in arrears. The non-redeemable preference shares are currently priced at R108. The coupon rate is 9% and the company has recently paid the preference dividend for the current year. Calculate the cost of the preference shares

Answer rating: 100% (QA)

To calculate the cost of preference shares we need to consider the dividend payment and the current ... View the full answer