Calculate the cost of preference capital (kp)

Reference no: EM13729564

Calculate the cost of preference capital (kp) for a non-redeemable preference share which has the following:

Price = $15 and a Preference dividend of $1.9 paid every six months. Your answer should the effective annual cost as a decimal accurate to four decimal places. For example an answer of 12.113% should be entered as .1211 with no % sign.

Reference no: EM13729564

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Calculate the cost of preference capital (kp) : Price = $15 and a Preference dividend of $1.9 paid every six months. Your answer should the effective annual cost as a decimal accurate to four decimal places. For example an answer of 12.113% should be entered as .1211 with no % sign.

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