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Q1. Assuming that a firm pays tax at a 50 percent rate,
compute the after tax cost of capital in the following
cases:
1. A 8.5% preference share sold at per.
2. A perpetual bond sold at per, coupan rate of
interest being 7per cent.
3. A ten year, 8 per cent, Rs. 1000 per bond sold at
Rs. 950 less 4 percent underwriting commission.

Question Posted / banu nuwal


Q1. Assuming that a firm pays tax at a 50 percent rate, compute the after tax cost of capital in t..

Answer / ajay

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