- This topic has 1 reply, 2 voices, and was last updated 6 years ago by
John Moffat.
John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)
-
Posts
-
kebeori
- Topics: 5
- Replies: 0
- ☆
BI Co has in issue 8% irredeemable bonds quoted at 86% ex int.
The rate of corporation tax is 25%; personal tax is to be ignored.What is the return to investors?
John Moffat
- Topics: 57
- Replies: 50572
- ☆☆☆☆☆
You need to calculate the IRR of the flows.
Tax is irrelevant because it is investors who determine the market value.I do suggest that you watch our free lectures – they are a complete course for Paper F9 and I cannot type them all out here 🙂
John MoffatViewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.