Preference Equity ex-dividend vs cum-dividend (Cost of Capital)

This topic has 1 reply, 2 voices, and was last updated 5 years ago by John Moffat.

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August 16, 2020 at 5:53 am #580723
himanshua03
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Hi John,

Just wanted to clarify, while calculating cost of preference share capital, if the question is silent on whether the market price given is ex-dividend or cum-dividend. What should we assume?
August 16, 2020 at 10:47 am #580738
John Moffat
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Unless the question says something different we always assume market prices are ex-dividend.
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