A company issues rs. 10,00,000 10% redeemable debentures at a discount of 5%. The cost of flotation amount to rs. 30,000.The debenture is redeemable after 5 years. Calculate before tax and after tax cost of debt assuming a tax rate of 50%?
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To calculate the cost of debt, a company must determine the total amount of interest it is paying on each of its debts for the year. Then it divides this number by the total of all of its debt. The result is the cost of debt....
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answer any one , cuz i need answer ?
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