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WACC-PREFERENCE SHARES

Forums › ACCA Forums › ACCA FM Financial Management Forums › WACC-PREFERENCE SHARES

  • This topic has 5 replies, 3 voices, and was last updated 13 years ago by Anonymous.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • June 3, 2011 at 6:20 pm #48887
    smzshaan
    Member
    • Topics: 7
    • Replies: 12
    • ☆

    SIR!

    i didnt find any calculation in WACC relating capital raised through pref.shares….resulting cost to company….there is nothing regarding this in notes as well as in lectures…isnt it in syllabus??? if it is in,then plzz tell me how to work it out….

    thanks

    June 3, 2011 at 7:58 pm #82909
    smzshaan
    Member
    • Topics: 7
    • Replies: 12
    • ☆

    also i didnt find valuation and cost of CONVERTABLE DEBTS????

    June 3, 2011 at 7:59 pm #82910
    smzshaan
    Member
    • Topics: 7
    • Replies: 12
    • ☆

    also i didnt find valuation and cost of CONVERTABLE DEBTS????

    June 3, 2011 at 8:57 pm #82911
    Niven
    Participant
    • Topics: 1
    • Replies: 34
    • ☆

    cost of preference=interest/market value of a preference share.
    About convertable shares ar shares that can be converted into shares but cannot be converted back to debt
    Thats what i can say about those two

    June 4, 2011 at 7:02 pm #82912
    smzshaan
    Member
    • Topics: 7
    • Replies: 12
    • ☆

    nivcool

    thanks buddy…but thats what i know too….my question is that why these two are not in course notes….aren’t they examinable??? secondly there should be a calculation regarding convertable bonds…

    June 5, 2011 at 3:07 pm #82913
    Anonymous
    Inactive
    • Topics: 0
    • Replies: 18
    • ☆

    I think preference share treated as irredeemable debt for the wacc.

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