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Q.7 a) A company issues 12% debentures at Rs. 5,00,000 at par redeemable after 10 years at premium of
5% and incurs Rs. 10,000 as issue expenses. Calculate the cost of debt.
(5)
b) Write short notes on : (any two)
(5*2)
i. Cost of Equity capital
ii. Cost of redeemable preference shares
iii. WACC
Module TV
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Answer:
The answer is very easy
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