Hi
Why avg of redeemable value and net proceeds is taken while calculating cost of redeemable debt.Please reply.
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Why Avg-FM
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| 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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