Multiple Choice Questions on The cost of preference share capital is calculated by ........ for Employee State Insurance Corporation (ESIC) Exam Preparation

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Multiple Choice Questions

The cost of preference share capital is calculated by ........

Principles of Accounting & Financial Management Cost of capital
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    The cost of preference share capital is calculated by _________.

     

    Dividing the price per preference share by the fixed dividend per share
     

    Correct Answer

    Dividing the book value per preference share by the fixed dividend per share
     

    Incorrect Answer

    Dividing the price per preference share by the fixed dividend per share and then adding the growth rate
     

    Incorrect Answer

    Dividing the price per preference share by the fixed dividend per share and then adding the risk premium
     

    Incorrect Answer
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    Explanation:


    Rp = D (dividend)/ P0 (price)

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