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1.INTEREST ON DEBT IS R.S 40000 AND THE MARKET VALUE OF THE DEBT OUTSTANDING IS R.S120000 AND THE MARKET VALUE OF COMMON STOCK IS R.S

1.INTEREST ON DEBT IS R.S 40000 AND THE MARKET VALUE OF THE DEBT OUTSTANDING IS R.S120000 AND THE MARKET VALUE OF COMMON STOCK IS R.S 80000. FIND THE COST OF DEBT.

2.WHAT IS PRESENT VALUE OF A 3 YEARS ANNUITY OF R.S 200 IF THE DISCOUNT RATE IS 7% AND THE FIRST PAYMENT COMES IN THE WAIT OF 2 YEARS INSTEAD OF 1 YEAR?

3.INTEREST ON DEBT IS R.S 40000 AND THE MARKET VALUE OF THE DEBT OUTSTANDING IS R.S120000 AND THE MARKET VALUE OF COMMON STOCK IS R.S 80000. FIND THE COST OF DEBT

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