Zainab Co. Ltd issues 100,000 shares at RM 0.5 per share. Half of the share price...
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Zainab Co. Ltd issues 100,000 shares at RM 0.5 per share. Half of the share price is given as dividends annually. All of the company's shares were subscribed. The company has 50,000 preference shares issued at RM 1 per share and pays RM 20,000 as preferred dividends. Debentures of Zainab Co. Ltd amounts to RM 550,000 at 15% interest rate. Determine the Cost of Capital? Zainab Co. Ltd issues 100,000 shares at RM 0.5 per share. Half of the share price is given as dividends annually. All of the company's shares were subscribed. The company has 50,000 preference shares issued at RM 1 per share and pays RM 20,000 as preferred dividends. Debentures of Zainab Co. Ltd amounts to RM 550,000 at 15% interest rate. Determine the Cost of Capital?
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To determine the cost of capital for Zainab Co Ltd you need to consider the cost of equity the cost of preference shares and the cost of debt Lets cal... View the full answer
Related Book For
Fundamental Accounting
ISBN: 9781485112112
7th Edition
Authors: David Flynn, Carolina Koornhof, Ronald Arendse, Anna C. E. Coetzee, Edwardo Muriro, Louise Christel Posthumus, Louise Mancy Smit
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