14. SV Ltd. Issued a 10% Debentures of ₹ 100 each at 20% discount. The underwriting commission will be paid on a. ₹ 100
b. ₹ 120
c. ₹ 90
d. None
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SV Ltd. Issued a 10% Debentures of ₹ 100 each at 20% discount. The underwriting commission will be paid on option d. None.
Explanation:
- Underwriting commissions are the fees that underwriters receive to raise new issues with investors.
- This is the fee that investment bankers charge to undertake securities issuance.
- The underwriting commission will be paid on ₹ 80.
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