Diggin Tools just issued new preference shares, which sold for R85 in the share markets.Holders of the shares will receive an annual dividend equal to R9.35.The flotation costs associated with the new issue were 6 percent and Diggin's marginal tax rate is 30 percent.What is Diggins cost of preference shares, kps?

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The Answer of Diggin Tools just issued new preference shares, which sold for R85 in the share markets.Holders of the shares will receive an annual dividend equal to R9.35.The flotation costs associated with the new issue were 6 percent and Diggin's marginal tax rate is 30 percent.What is Diggins cost of preference shares, kps?

Diggin Tools Just Issued New Preference Shares, Which Sold for R85