IPCC cost of capital query!

IPCC 903 views 2 replies

i found this question in IPCC Scanner [shuchita publications], 10th edition january 2010. pg no: i - 635.

"z ltd's, EBIT = 9,00,000/-. the firms cost of debt is  10% and currently firm employs30,00,000 of debt. find Ke"

it is a 3 mark question. teh question was asked in nov 2007[as per scanner].  how ever i doubt that the question is incomplete as the datas given are insufficient to find the required.  i have also verified the Suggested answers of november 2007 and did not find the question.

can u pls help me in soving the problem by giving the right question.

 

Replies (2)

Yes..Question is incomplete as it could nt be solved under any of the methods specified..Market price of the share cn help in finding the Ke along with other options available
 

Hi Achyutananad/Amit Gupta

Thanx for bringing out the issue...requisite changes have been made and the problem is resolved now.......


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