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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. The

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.

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 the high growth stage. What is the best estimate of the company’s share price? Should the share be purchased?

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