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14. Determinethecostof capitalfor thefollowingsecurities. Assume40%taxrate. a) A seven-year debenture with a coupon interest of 10%. The debentures matures infiveyearsandhasa currentmarketpriceofBr90 as againstits par valueofBr 100.
14. Determinethecostof capitalfor thefollowingsecurities. Assume40%taxrate. a) A seven-year debenture with a coupon interest of 10%. The debentures matures infiveyearsandhasa currentmarketpriceofBr90 as againstits par valueofBr 100. b) A preference share pays 7% dividend. Par value is Br 100 per share and its currentmarketpriceis Br 80
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