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    Cost of Preference Share - 092324

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    bhaveshkumartrigun52
    Y. Co. Ltd. issued 10,000 12% preference shares at a face value of Rs. 100 each but at a premium of 10%. The shares are redeemable at a premium of 20% after 5 years. The company paid an underwriting commission of 5% and the tax on dividends is 12.5% with a 2.5% surcharge and 3% education cess. To calculate the cost of preference share capital.

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    Cost of Preference Share - 092324

    Uploaded by

    bhaveshkumartrigun52
    4 views2 pages
    Y. Co. Ltd. issued 10,000 12% preference shares at a face value of Rs. 100 each but at a premium of 10%. The shares are redeemable at a premium of 20% after 5 years. The company paid an underwriting commission of 5% and the tax on dividends is 12.5% with a 2.5% surcharge and 3% education cess. To calculate the cost of preference share capital.

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    Cost of Preference Share_092324

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    Y. Co. Ltd. issued 10,000 12% preference shares at a face value of Rs. 100 each but at a premium of 10%. The shares are redeemable at a premium of 20% after 5 years. The company paid an underwriting commission of 5% and the tax on dividends is 12.5% with a 2.5% surcharge and 3% education cess. To calculate the cost of preference share capital.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    4 views2 pages

    Cost of Preference Share - 092324

    Uploaded by

    bhaveshkumartrigun52
    Y. Co. Ltd. issued 10,000 12% preference shares at a face value of Rs. 100 each but at a premium of 10%. The shares are redeemable at a premium of 20% after 5 years. The company paid an underwriting commission of 5% and the tax on dividends is 12.5% with a 2.5% surcharge and 3% education cess. To calculate the cost of preference share capital.

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    Download as PDF, TXT or read online from Scribd
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    Download as pdf or txt
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    redeemable at a premium @20% after 5 years. The company pays underwriting commission
    @ 5%. If tax on dividend is 12-5%, surcharge is 2-5% and education cess is 3%, calculate the
    cost of Preference Share Capital. (C.U. B.Com (Hons.) - 20O09]

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