Question No: 03 This is a subjective question, hence you have to write your answer in the Text-Field given below Initial Year Loss Ltd (IYL) made a huge loss (of Rs 60 crores) in the previous financial year. IYL is confident of making profits of Rs 10 crores p.a. (assumed uniform) for several years to come. IYL has been advised that the tax regulations allow a set off of the past losses against profits in the future (subject to conditions, thereby attracting a reduced nil tax liability in future. Further, you were taught in FM course that cost of debt needs to be tax- adjusted for calculating the overall cost of capital. What are the arguments. FOR and or AGAINST, for doing the tax adjustment for calculating the cost of capital for IYL [5] Options ubad AS Sheets Sale 20000 (Max Upto 20000 Characters) Format - Table - Insert EE K MOKING 7 B E = Formats v q PG 14/11/2021 Wwwwww 25C o Question No: 03 This is a subjective question, hence you have to write your answer in the Text-Field given below Initial Year Loss Ltd (IYL) made a huge loss (of Rs 60 crores) in the previous financial year. IYL is confident of making profits of Rs 10 crores p.a. (assumed uniform) for several years to come. IYL has been advised that the tax regulations allow a set off of the past losses against profits in the future (subject to conditions, thereby attracting a reduced nil tax liability in future. Further, you were taught in FM course that cost of debt needs to be tax- adjusted for calculating the overall cost of capital. What are the arguments. FOR and or AGAINST, for doing the tax adjustment for calculating the cost of capital for IYL [5] Options ubad AS Sheets Sale 20000 (Max Upto 20000 Characters) Format - Table - Insert EE K MOKING 7 B E = Formats v q PG 14/11/2021 Wwwwww 25C o