题:6% redeemable preference shares at 31 March 2008 (note ) 41,600有关的note如下:The 6% preference shares were issued on 1 April 2007 at par for $40 million. They have an effective finance cost of 10% per annum due to a premium payable on their redemption.答案如下:preference shares $`...
In case ofredeemable preference shares, the cost of capital is the discount rate that equals the net proceeds of sale of preference shares with the present value of future dividends and principal repayments. 3.Cost of Equity Capital The computation of the cost of equity capital is a difficult ...
The cost of preference shares is derived using a formula, which has also been provided. It iskpref = d ÷ P0where: ■ kpref is the cost of preference shares. d is the annual preference dividend, which can be worked out as $1 × 7% = $0.07. How are redeemable debentures calculated?
Capitalofacompanyconsistsof: 1.Equity(equitysharecapital+reserves&surpluses) 2.Preferencesharecapital 3.Loancapitali.e.Debenture EBIT-EPSChart FalconLimitedplanstoraiseadditionalcapitalofRs.10mlnforfinancinganexpansionproject.Inthiscontext,itisevaluatingtwoalternativefinancingplans:(i)issueofequityshares(1mlnequ...
Features:1.Debtistaxdeductibleandhenceinterestpaymentaremadenetoftax2.Debtisalwaysquotedin$100nominalunitsorblocks.3.Interestpaidonthedebtisstatedasapercentageofnominalvalue.Thisisknownascouponrate(notthecostofdebt).Interestpayable=couponrate*nominalvalueofthedebt4.Debtisnormallyredeemableatpar(nominalvalue)...
preference shares shall be entitled to receiveareturn ofthecapitalpaidupontheredeemable non-voting preference shares held by them respectively. equitynet.com.hk equitynet.com.hk 於清盤時,可贖回無投票權優先股持有人有權按彼等各自持有之可贖回無投票權優先 股比例獲退還已繳足之資本。
and any two of the rest from this part.) Marks1. (a) 15,000, 9% Redeemable preference shares of Rs.100 each of Global Customer Care Ltd., repayable at a premium of 12% are now due for redemption. The company has accumulated reserves the amount...
12% Redeemable preference shares @ Rs. 100 each, fully paid–upEquity shares of Rs. 10 each, fully paid–upReserves and surplus : Capital reserveSecurities premiumRevenue reserveCurrent liabilities and provisions : Current liabilities 75 25 15 25 260 40 440 ...
Equity (15,00,000 Shares of Rs.100 each) — 1,50,000 8% Redeemable preference (40,000 shares) — 40,000 Securities premium — 2,500 Preference share redemption 4,800 — General reserve — 10,000 Land (cost) 30,000 — Buildings (cost less dep...
10% Redeemable preference capital Capital redemption reserve Capital reserve General reserve Profit and loss account 9% Debentures Sundry creditors Bills payable Liabilities for expenses Provision for taxation Proposed dividend 6,00,000 — 1,00,000 1,00,000 1,00,0...