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0. Cost of Preference Capital can be obtained by
KP = E – P/2/D – E/100 (1 - Tax)
KP = E – P/2/D + 1/100 x 100
KP = D + 1/2 x 100
KP = D + (M.V. - N.P./n)/(M.V. + N.P./2)
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