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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Cost of Preference shares
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 .
oops ! I get it now. Silly mistake.
Great 🙂
