A company has 15 perpetual debt of 10000000 the tax rate
Question: A Company has 15% perpetual debt of $ 100000.00. The tax rate is 50%. Determine the cost of capital (before tax as well as after tax) assuming the debt is isued at
(i) par,
(ii) 10% discount, and
(iii) 10% premium.
Now Priced at $15 (50% Discount)
Recommended (95%)
Rated (4.7/5)
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question a company has 15 perpetual debt of 10000000 the tax rate is 50 determine the cost of capital before tax as
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