1..Five years ago, Sona Limited issued 12 per cent irredeemable debentures at 103, at 3 premium...

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1..Five years ago, Sona Limited issued 12 per cent irredeemable debentures at 103, at 3 premium to their par value of 100. The current market price of these debentures is `94. If the company pays corporate tax at a rate of 35 per cent CALCULATE its current cost of debenture capital. 2.. A company issued 10,000, 10% debentures of 100 each at a premium of 10% on 1.4.2017 to be matured on 1.4.2022. The debentures will be redeemed on maturity. COMPUTE the cost of debentures assuming 35% as tax rate.. 1..Five years ago, Sona Limited issued 12 per cent irredeemable debentures at 103, at 3 premium to their par value of 100. The current market price of these debentures is `94. If the company pays corporate tax at a rate of 35 per cent CALCULATE its current cost of debenture capital. 2.. A company issued 10,000, 10% debentures of 100 each at a premium of 10% on 1.4.2017 to be matured on 1.4.2022. The debentures will be redeemed on maturity. COMPUTE the cost of debentures assuming 35% as tax rate..

Answer rating: 100% (QA)

1 Calculate the current cost of debenture capital The coupon rate is 12 The ... View the full answer