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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › redeemable preference share
how to calculate the cost of redeemable preference shares.is swaps are excluded from f9 or not
You would calculate the cost of redeemable preference shares in exactly the same way as we calculate the cost of redeemable bonds. The only difference is that because there is no tax relief on the dividends, you would ignore tax. (However preference shares in the exam are always irredeemable unless you are told differently, and I think I am right is saying that he has never asked you to calculate the cost of redeemable preference shares.)
Calculations on swaps cannot be asked in F9. You could be asked to explain the idea – the most you could need is what is written in our free F9 Course Notes on page 130.