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Question 3& 4 th please 3. . . 1,00,000 : The management of G. C. Ltd. has proposed to invest Rs. 1,00,000 in a project
Question 3& 4 th please
3. . . 1,00,000 : The management of G. C. Ltd. has proposed to invest Rs. 1,00,000 in a project which will give earning for six years as follows: (Year) (Rs.) 1 30,000 2 20,000 3 20,000 4 18,000 5 18,000 6 12,000 - Calculate pay-back period. 100 1,000, 7% : 1.5%, 0.5% 500 50% A company is willing to issue 1,000, 7% irredeemable debentures of Rs. 100 each and for which the company will have to incur the following expenses : Underwriting commission 1.5%, Brokerage 0.5%, printing and other expenses Rs. 500. Assume that company's tax rate is 50%. Find out the cost of capital. 4Step by Step Solution
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