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Topic: Business
Number of pages / Number of words: 4 / 855
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More shares used leads to a wider distribution of profits. The cost of underwriting and distributing new issues of ordinary shares are usually very high and also the company’s cost of capital will rise due to the increase proportion of equity finance. Finally, dividends are not tax deductible, like interest payment on debentures, which can reduce profits available and can increase the cost of equity relative to debt...


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Finally, dividends are not tax deductible, like interest payment on debentures, which can reduce profits available and can increase the cost of equity relative to debt.

Issue of 10% Preference Shares

The advantage of using preference shares is that they carry a fixed rate of dividend and payment of this can be deferred at the company’s discretion...


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General points of the essay

Business Law - shares Cost Distribution Methods Equity Common shares Examination of the Cost of Equity paper critque finance in Ukraine Is a company able to increase brand equity for a product that is in the maturity phase of the PLC? Low Prices, High Cost MSFT and APPLE shares comparison Microsoft shares the wealth Sport Pilot School Shares Experiences Sure Cut Shares The impact of capital structure on a company’s cost of capital Real Cost Of Equity High Cost of Healthcare Would You Buy Ford'S Shares?

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