A company issued 20000 7% preference shares of ₹50 each at premium of 4%. Flotation cost was ₹2 per share. Applicable income tax rate is 20%. Cost of preference share capital will be :
CS Executive · Financial and Strategic Management · PYQS · June 2023
A company issued 20000 7% preference shares of ₹50 each at premium of 4%. Flotation cost was ₹2 per share. Applicable income tax rate is 20%. Cost of preference share capital will be :
Answer & Explanation:
Correct Answer: Option (A)
Official answer key: (A).
Topics: Financial Management
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