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Abhishek Jhunjhunwala

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2 years ago

What Is Cost Of Preference Shares?

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Muskan Anand

2 years ago

Costs of preference share are also used to calculate the cost of capital and are the fixed cost bearing securities. In this the rate of dividend is fixed in advance when they are issued. It is equal to the ratio of annual dividend income per shares to net proceed. It is not used for taxes and it should not be adjusted for the same. Basically it is larger than the cost of debt.

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