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financial management

This query is : Resolved 
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(Querist)
06 June 2014 in costof share formula is
D(1+CDT)+(RV-NP)/N WHOLE DIVIDED BY (RV+NP)/2


WHAT ARE THE REASON BEHIND THAT WE ADD THE (1+CDT)
BUT IN COST OF DEBT WE LESS THE TAX AT INTESEST PAID TO LENDER.

WHY PLEASE CLEARYFY MY DOUBT
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CS,CA F,Numrologi TusharSampat

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CS,CA F,Numrologi TusharSampat (Expert)
07 June 2014 in cost of debt we get deduction for income tax act as int exp but for dividend we pay div tax and no tax is allowed as deduction in profit and loss a/c.
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vikas dhiman

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vikas dhiman (Querist)
21 June 2014 thanks you lots sir
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