Question

4) Company A issues 12%,2000 debentures of the face value
Rs. 100.
Company B issues 15%,3000 debentures of Rs. 100 each.
The debentures are redeemable after 8 years
Both the companies are in tax bracket of 30%. Calculate cost of
debentures before and after tax for both the companies.
a) At par
b) 10% discount
Solution:
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100%
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Answer 1

Answer:

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Explanation:

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