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Hi sir,
sometimes issue cost is added to the loan raised to give the total amount on which interest is paid. Sometimes too the issue cost is ignored.Please clarify.
ThanksIt depends whether the issue costs are coming out of the finance raised (leaving only the net amount available for investing) or whether they are being paid in addition to the amount raised for investing.
It means reading the question carefully, but if it is not clear then just (as always in P4) state your assumption.
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