- This topic has 1 reply, 2 voices, and was last updated 8 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Sir there was a past exam question that
Phobis co has in issue 9% bonds which are redeemable at their par value of $100 in 5 years’ time . Alternatively each bond may be converted on that date into 20 ordinary shares of the company. The current ordinary share price of Phobis co is $4.45 and this is expected to grow at a rate of 6.5% per year for the foreseeable future. Phobis co has a cost of debt of 7% per year
Sir here cost of debt of 7% will assumed to be before tax cost of debt na or is it after tax?
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.