ABC Ltd. floated 20000 10% preference shares of ₹100 each redeemable after 10 years at face value. Floatation cost amounted to ₹2 per share. Applicable tax rate is 30%. Cost of preference shares will be :
CS Executive · Financial and Strategic Management · PYQS · June 2022
ABC Ltd. floated 20000 10% preference shares of ₹100 each redeemable after 10 years at face value. Floatation cost amounted to ₹2 per share. Applicable tax rate is 30%. Cost of preference shares will be :
Answer & Explanation:
Correct Answer: Option (C)
Official answer key: (C).
Topics: Financial Management
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