Cost of Redeemable Preference Share Capital is:

Related MCQs

• Use of Preference Share Capital in Capital structure
• Cost of irredeemable preferences share capital is equal to kp=preference dividend divided by
• Lei-Feng, Inc.'s $100 par value preferred stock just paid its $10 per share annual dividend. The preferred stock has a current market price of $96 a share. The firm's marginal tax rate (combined federal and state) is 40 percent, and the firm plans to maintain its current capital structure relationship into the future. The component cost of preferred stock to Lei-Feng, Inc. would be closest to .
• If a firm has no Preference share capital, Financial Break even level is defined as equal to -
• The use of long term fixed interest bearing debt and preference share capital along with equity shares is called
• When preference shareholders have a right to convert their preference shares in to equity shares after a pre-decided dare such shares are called -------- shares.
• Axis Ltd is issuing 15% debentures ( face value Rs60). The net amount realized per debenture is Rs54 and they are redeemable at par after 6 years. At a corporate tax rate of 40%, what is the cost of debt?
• Cost Capital for Equity Share Capital does not imply that:
• Cost of Equity Share Capital is more than cost of debt because:
• A company should arrange the capital structure in such a way that there is maximum flexibility in the capital and cost of capital is