Cost of capital

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 October 2012 equity shares are quoted at Rs.130
over here what is 130
market price or face value..
& in cost of equity(ke)=D1/Po*100
Po is always market price?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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13 October 2012 Rs. 130 is the market price.
Po will always be the market price.

Querist : Anonymous

Querist : Anonymous (Querist)

15 October 2012 theres one sum in the module of cost of capital.it says..
e.shares are quoted @rs.130per share and a new issue priced @rs.125 per share fully subscribed;floatation cost rs.5 per share.

Bt while applying d formulaof Ke dey have taken Po as (125-5) in d denominator.y not 130.???

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