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(a) Calculate the after-tax-cost of debt, from the following information: (i) 15% Debt having face value Rs. 100 issued for Rs. 96 (ii) Maturity period
(a) Calculate the after-tax-cost of debt, from the following information: (i) 15% Debt having face value Rs. 100 issued for Rs. 96 (ii) Maturity period is 5 years (iii) Redemption Value is Rs, 103 (iv) Tax Rate is 40% (b) Calculate the Cost of Equity Capital, from the following information : (i) Per Annum Dividend = Rs. 12 (ii) Market Price of the Share is Rs. 100 (iii) Dividend Expected to grow at a constant rate of 5% p.a
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