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Calculate cost of debt for the following: The bond with a face value of 1000 were trading at RM 940 with 5 years to maturity
Calculate cost of debt for the following: The bond with a face value of 1000 were trading at RM 940 with 5 years to maturity ( annual coupon payment of 5%). Buying the truck means that he would incurring a cost of RM 85,000 each year for the whole feet. The company tax rate is 30%. The cost of capital is same as cost of deb. Which one is wiser equity or debt?
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