Formula for cost of capital

IPCC 1037 views 1 replies

hello experts,, 

can you tell me the formula of Kp and Kd

if Market price of Preference shares and Debenture are given 

in the question. it is also to note that these securities are 

redeemabable at par at N=10,

Narender

Que :100, per debenture redeemable at par has 2% flotation cost and 10 years of 

maturity. the MP per debenture is105/- 

Wht will be Kd in this case.

Replies (1)
Dude the interest rate is missing in this question i guess. if we dont have the interest than how can we calculate the k(d)


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register