微信扫一扫
实时资讯全掌握
A company has issued 6% irredeemable preferred shares of $1 each, and 6% irredeemable bonds. The current market value of the preferred shares is $0.75 each and the current market value of the bonds is $96.00 per $100 nominal. The rate of tax is 25%. What is the cost of the preference shares and the cost of the bonds? A. Cost of preferred shares 8%, cost of bonds 4.7% B. Cost of preferred shares 8%, cost of bonds 4.5% C. Cost of preferred shares 6%, cost of bonds 4.5% D. Cost of preferred shares 6%, cost of bonds 4.7% |