Question

IV.
a) Calculate the after-tax-cost of debt, from the following information:-
i) 15% Debt having face value Rs. 100 issued for Rs.96
ii) Maturity period is 5 Years
iii) Redemption Value is Rs. 103
iv) Tax Rate is 40%
b) Calculate the cost of Equity Capital, from the following information:
i) Per Annum Dividend = Rs. 12
ii) Market Price of the Share is Rs.100
iii)
Dividend Expected to grow at a constant rate of 5% p.a.
(10+6)

Answer 1

Answer:

975484748537&888888877877777888888988889989998888889℅