3. Y Ltd. issues 25,000, 14% debentures of `1,000 each. The debentures are redeemable after expiry period

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3. Y Ltd. issues 25,000, 14% debentures of `1,000 each. The debentures are redeemable after expiry period of 5 years. Tax rate applicable to the company is 35%. Calculate the cost of debt if debentures are issued at 5% discount with 2% floatation cost.

[Ans. Kd = 10.37%]

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Financial Management

ISBN: 9789352605606

1st Edition

Authors: Swapan Sarkar, Bappaditya Biswas, Samyabrata Das, Ashish Kumar Sana

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