Financial Management

1:

Cost of Preference Capital can be obtained by

A.

KP = E – P/2/D – E/100 (1 - Tax)

B.

KP = E – P/2/D + 1/100 x 100

C.

KP = D + 1/2 x 100 

D.

KP = D + (M.V. - N.P./n)/(M.V. + N.P./2)

 

Answer : D

Explanation :

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Option: A

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