Five years ago, Eranio plc issued 12 per cent irredeemable debentures at their par value of 100.
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Five years ago, Eranio plc issued 12 per cent irredeemable debentures at their par value of £100. The current market price of these debentures is £94. If the company pays corporation tax at a rate of 30 per cent, what is its current cost of debenture capital?
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Related Book For 
Corporate Finance Principles And Practice
ISBN: 9780273706441
4th Edition
Authors: Denzil Watson, Anthony Head
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