Hi
Why avg of redeemable value and net proceeds is taken while calculating cost of redeemable debt.Please reply.
Hi
Why avg of redeemable value and net proceeds is taken while calculating cost of redeemable debt.Please reply.
| Originally posted by :Amit Gupta | ||
| " | Hi Why avg of redeemable value and net proceeds is taken while calculating cost of redeemable debt.Please reply. |
" |
usually the denominator is the market value and in the case of redeemable securities the market value is net proceed at the time of n issue and redeemable value is the estimate of the market value at the time of redemption. so we use the avg of both
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