Question: Please solve the 5th question for me. Thankyou 5. Preferred Ltd. Issued 30,000, 15% Preference shares of Rs. 100 each. The cost of issue was

Please solve the 5th question for me. Thankyou Please solve the 5th question for me. Thankyou 5. Preferred Ltd. Issued

5. Preferred Ltd. Issued 30,000, 15% Preference shares of Rs. 100 each. The cost of issue was Rs. 30,000. Determine the cost of Preference Capital if shares are issued (a) at par (b) at a premium of 10% and (c) at a discount of 10%. (Ans: at par: 15.15%, at Premium at 13.76%, at discount 16.85%) 7. ABC Ltd. issues 20,000, 8% preference shares of Rs. 100 each. Redeemable after 8 years at a premium of 10%. The cost of issue is Rs. 2 per share. Calculate the cost of preference share capital. (Ans: Kp- 9.13%)

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