Cost of Preference sharesForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Cost of Preference sharesThis topic has 2 replies, 2 voices, and was last updated 3 years ago by John Moffat.Viewing 3 posts - 1 through 3 (of 3 total)AuthorPosts February 15, 2021 at 6:06 am #610435 chughtai20ParticipantTopics: 39Replies: 52☆☆5% pre. shares $1 nominal value. Total nominal value is $10 million. The ex-dividend market value of the preference shares is $6·25 million. Cost is 3 % when I calculate it like this 0.05/(10/6.25) but the answer says cost is 8 %. I don’t get it . February 15, 2021 at 6:19 am #610437 chughtai20ParticipantTopics: 39Replies: 52☆☆oops ! I get it now. Silly mistake. February 15, 2021 at 8:03 am #610460 John MoffatKeymasterTopics: 57Replies: 54500☆☆☆☆☆Great 🙂AuthorPostsViewing 3 posts - 1 through 3 (of 3 total)The topic ‘Cost of Preference shares’ is closed to new replies.