Question: kindly solve this question for me Question 3 A & S Ltd. has recently come out with a preference share issue to the tune of

kindly solve this question for me Question 3 A & S

kindly solve this question for me

Question 3 A & S Ltd. has recently come out with a preference share issue to the tune of D1,2005. Each preference share has a face value of 100 and a dividend of 15% payable. The shares are redeemable after 10 yrs. at a premium of D5 per share. The company hopes to realize D98 per share now. Calculate the cost of preference capital. (4 marks)

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