Use of Preference Share Capital in Capital structure

Related MCQs

• The use of long term fixed interest bearing debt and preference share capital along with equity shares is called
• 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 .
• 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.
• Cost of Redeemable Preference Share Capital is:
• If a firm has no Preference share capital, Financial Break even level is defined as equal to -
• Cost of irredeemable preferences share capital is equal to kp=preference dividend divided by
• A cumulative preference share is one
• A company should arrange the capital structure in such a way that there is maximum flexibility in the capital and cost of capital is
• Which of the following stresses on investor's preference reorient dividend than higher future capital gains ?
• Cost Capital for Equity Share Capital does not imply that: