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a. In Super Steel Ltd., the value of 10% Debentures is INR 75,00,000. Assume the tax rate to be 50%. Compute the cost of debt.

a. In Super Steel Ltd., the value of 10% Debentures is INR 75,00,000. Assume the tax rate to be 50%. Compute the cost of debt.

b. The expected EPS of a company for the current year is Sh. 10. In the industry the standard P/E ratio is 15 to 20. The company is in high growth stage. What is the best estimate of companys share price? Should the share be purchased?

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