Problem 4: Preference Shares, Definite Life
The entity received \( P 7,580,000 \) cash from the issuance of its \( 9 \%, 3 \)-year P8,000,000 par value preference shares. How much is the cost of the preference shares using the following methods?
7. Interpolation method using multiplies of \( 1 \% \)
8. Yield-to-maturity formula
Problem 5: Preference Shares, Definite Life with Liquidating Value
Use the same given as in Problem 3. Additionally assume that these shares have a liquidating value of \( P 8,200,000 \). How much is the cost of the preference shares using the following methods?
9. Interpolation method using multiplies of \( 1 \% \)
10. Vield-to-maturity formula