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Find what is the cost of the preference shares

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Reference no: EM132757414

Problem 1: A company has 8% preference share in issue at a current value of 94p. The tax rate is 30%. What is the cost of the preference shares?

A. 8.5%

B. 6.0%

C. 8.0%

D. 5.6%

Reference no: EM132757414

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