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Find out the cost of capital after tax and before tax

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Question - Rishi ltd. has issued 1,000, 9 % Preference Shares of Rs. 100 each at Rs. 95 per share. The floatation charges are underwriting commission 2%, brokerage 0.5% and printing Rs. 500. The company is subject to tax rate of 50%. Find out the cost of capital after tax and before tax.

Reference no: EM133030197

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