Question
A firm issues debentures of ₹10,00,000 at 10% coupon
rate, redeemable after 5 years at 5% premium. Flotation cost = 2%. Calculate effective cost of debt (Kd) before tax.Solution
Net proceeds = 10,00,000 – 2% = ₹9,80,000. Annual interest = ₹1,00,000. Redemption = ₹10,50,000. Kd ≈ [I + (RV – NP)/n] ÷ [(RV + NP)/2] = [1,00,000 + (10,50,000 – 9,80,000)/5] ÷ [(10,50,000 + 9,80,000)/2] = [1,00,000 + 14,000] ÷ 10,15,000 = 1,14,000/10,15,000 = 11.24%
Red leaf disorder of cotton is caused by
What is the validity period of the seed certificate after tagging?
Isolation distance for foundation seed of tomato is
Molya disease in wheat is caused due to _____
Which part of sugarcane is preferred for sowing?
Grodex test is used in the determination of
Seed cotton means
What is the minimum isolation distance for certified sorghum hybrid seed production?
What is the minimum genetic purity required for certified hybrid cotton seeds?
Seeds are formed but the embryos develop without fertilization in
