Chapter 13 The Cost of Capital

4.7.2 The main difference between preference shares and debt is that the . preference dividend payments are not tax deductible. The formulae are therefore: Where Dp = the constant annual preference dividend. P0 = ex div market value of the share. 4.7.3 Example 14. A company has 50,000 8% preference shares in issue, nominal value $1. ................
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