1 Points
Posted on 15 November 2016
An American multinational firm is planning to borrow Rs 1000 crores in India @ 12 % .Flotation cost s are Rs 10 .These flotation costs are amortized over 5 years period of the load in equal installments.
Tax Rate is 30 % and Spot Rate 1$=61.58 Rs and dollar is expected to appreciate @ 3% each year. Calculate cost of debt