Question
1Consider the following data: Source Market Value Cost (%) Equity 10,00,000 18 Debt 5,00,000 13 14.82% 2 Given the following information about a debenture, the
1Consider the following data: Source Market Value Cost (%) Equity 10,00,000 18 Debt 5,00,000 13 14.82%
2
Given the following information about a debenture, the post-tax cost of the debenture using the approximation formula is
Par value = Rs. 100; Coupon rate = 10%
Redemption price = Rs. 102 per debenture
Net amount realized = Rs 98 per debenture
Tax rate = 0.35; Number of years to maturity =
5.5%
8.0%
6.5%
7.5%
7.0%
3
If a loan of Rs. 3,00,000 is to be repaid in 6 annual installments with a coupon rate of 12% p.a. then the equated annual installment will be
Rs. 72,975
Rs. 71,967
Rs. 75,995
4
If the annual cash inflow for a bond is Rs. 200, the present value of the bond, if the inflows continue for 5 years at a required rate of 11%, is
Rs. 939
Rs. 869
Rs. 739
Rs. 839
5
An income stream provides Rs. 2000 for first three years and Rs.3000 for next three years, if interest rate is 14% then the present value of income stream is
Rs. 8650.85
Rs. 9624.25
Rs. 9345.00
Rs. 8860.50
6
A loan of Rs. 5,00,000 is to be repaid in 10 equal annual installments. If the loan carries a rate of interest of 12% p.a, the equated annual installment is
Rs. 95,496
Rs. 75,000
Rs. 88,496
Rs. 1,00,000
Rs. 80,000
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