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COEDEN

This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.

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May 1, 2018 at 2:25 am #449582
foeldh123
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In DEC 12, COEDEN CO, PART (A)
you have mentioned that 4.9 is to calculate market value of debt in previous response.
Then, if the ( just assumption) question have asked us to calculate cost of debt, then i could use
4% + 0.9% ( 1 – T ) = cost of debt ???
May 1, 2018 at 6:11 am #449609
John Moffat
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If the debt was irredeemable. When the debt is redeemable then you need to calculate the IRR.
Are you watching the free lectures, or trying to learn just by practicing past exam questions?
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