Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

plz ans 6 , 10 its short question ans both plz Question 6 Not yet answered Marked out of 1.00 Tulip LLC issued 10,000,9 %

plz ans 6 , 10 its short question ans both plz image text in transcribed
image text in transcribed
Question 6 Not yet answered Marked out of 1.00 Tulip LLC issued 10,000,9 % debentures of OMR 85 each on 1-4-2018 to be matured on 1-4-2024. The company wants to know the current cost of its existing debt and the market price of the debenture is OMR 75. The debenture is redeemed at discount rate of 5% Find the cost of existing debentures assuming 40 % tax rate. F Flag question 5.54% 8.02% 7.12% 11.05% Question 10 Not yet answered Maried out of 100 If the price of the KIA company share is OMR 60 and it is expected to increase at an annual rate of 4.8 %. Further it is assumed that the dividend after a year is OMR 9 and it is also expected to grow at a rate of 6% per annum. The opportunity cost of capital is 14%, what would be the aggregate present value of the return on shares invested for a period of 4 years?(consider three place after decimal in your calculation) Flag question OMR 29.71 OMR 40.88 None of them OMR 69.19

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Auditing

Authors: William C Boynton, Raymond N Johnson

8th Edition

0471230111, 978-0471230113

More Books

Students also viewed these Accounting questions

Question

What processes are involved in perceiving?

Answered: 1 week ago