Question
Baba Co has in issue 75% bonds redeemable in five years time with a total nominal value of $4 million. The market value of each
Baba Co has in issue 75% bonds redeemable in five years time with a total nominal value of $4 million. The market value of each $100 bond is $10113. The corporation tax rate is 30%. Redemption will be at nominal value. Calculate the cost of debt of Baba Co.
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National Finance A Chinese Perspective
Authors: Yunxian Chen, Heming Yong
1st Edition
9813360917, 978-9813360914
