Question

Problem 1
Determine the cost of capital in the following cases:
(a) X Ltd. issues 14% debentures of face value INR 100 each and
realizes INR 90 per debenture. The debentures are redeema-
ble after 10 years at a premium of 10%.
(b) Y Ltd. issues 12% preference shares of face value INR 100 each
and realizes INR 92 per share. The shares are repayable after 10
years at par
Mota​

Answer 1

Answer:

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