Bond Factory Ltd issued R200, 000, 9% debentures at a premium of 10%. The costs of floatation

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Bond Factory Ltd issued R200, 000, 9% debentures at a premium of 10%. The costs of floatation are 2%. The debentures are redeemable in 10 years.

Compute the before tax cost of debt.

Related Book For answer-question

Financial Reporting and Analysis

ISBN: 978-0078025679

6th edition

Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon

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Posted Date: Jul 03, 2023 02:35 AM

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Bond Factory Ltd issued R200, 000, 9% debentures at a premium of 10%. The costs of floatation

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Financial Reporting and Analysis

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