Calculating preference shares

Area/Neighbourhood: Vijayawada

Calculating preference shares

Calculating the cost of preference share capital. The cost of preference share capital is that part of the cost of capital in which we calculate the amount payable to preference shareholders in the form of dividends with a fixed rate. We can calculate the types of cost of preference shares using the following methods. The Formula for Types of Cost of Preference Shares.Irredeemable Preference Share Kp = Dp/NP. Redeemable Preference Share Kp = Dp+ ( (RV-NP)/n)/ (RV+NP)/2

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