Accountancy, asked by ayush9820, 4 months ago

A firm issues debentures worth 1,00,000
and realizes *98,000 after allowing 2%
commission to brokers. They carry an
Interest rate of 10% and are due for
maturity at the end of 10th year. The
company has 40% tax bracket. Calculate
cost of debt after tax.​

Answers

Answered by xxxmysterxxx
2

Answer:

financial management su - BDU OMS

A firm issues debentures of Rs.1, 00,000 and realizes Rs.98000 after allowing 2% ... are due for maturity at the end of the 10th year. 22. ... Calculate before tax and after tax cost of debt assuming a tax rate of 40%. 23.

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