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1. A firm in tends to issue 10,000 10% debentures each of Rs. 10. What is the cost of capital if the firm desires to
1. A firm in tends to issue 10,000 10% debentures each of Rs. 10. What is the cost of capital if the firm desires to sell at 5% premium. The tax rate is 50%. 2. A firm issued 10,000, 10% debentures of Rs. 10 each at a premium of 5% with a matwity period of 20 years. The tax rate is 50%. Find the cost of capital 3. A company raised loan of Rs. 25,000 by 10% debentures at 10% discount for a period of ten years, underwriting costs are 3% and tax rate is 50%
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