Question
A UK listed company's 8% irredeemable loan stock has a current ex-interest market price of 125 per 100 nominal value. Interest is payable on an
A UK listed company's 8% irredeemable loan stock has a current ex-interest market price of 125 per 100 nominal value. Interest is payable on an annual basis. If the company pays corporation tax at 30%, the cost of the loan stock for the company will be A. 4.48% 0 . 5.60% C. 6.40% D. 8.00%
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Financial Accounting Tools For Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine, Christopher D. Burnley
8th Canadian Edition
111959457X, 978-1119594574
