What is the cost of pre share funding

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The company has 15 million preference shares on issue, currently trading at a market price of $22 each. These shares pay a constant dividend of $1.20 per share, semi-annually. What is the cost of pre share funding?

The company also has 600 million ordinary shares on issue, currently trading at a market price of $2.90 per share. When these shares were first issued, the par values were $1.50 each. The company's equity beta has been recently estimated at 1.45. What is cost of equity funding?

Reference no: EM132613955

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