The Cost of Preference Shares Is Equal to

question 27

Multiple Choice

The cost of preference shares is equal to

• A)the preference shares dividend divided by market price.
• B)the preference shares dividend divided by its par value.
• C)(1 - tax rate)times the preference shares dividend divided by net price.
• D)the preference shares dividend divided by the net market price.

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Definitions:

Business Finances

The management of a company's money, including budgeting, investing, and financial reporting.

Family Business Feud

What occurs when family members have major disagreements over how the business should be run.

Work Responsibilities

The duties and tasks assigned to an employee as part of their job role.

Business Strategy

A plan of action designed to achieve a long-term or overall aim within the business sector, considering internal and external factors.