Compute the after-tax cost of debenture, Microeconomics

Assignment Help:

A 5-years Rs.100 debenture of a firm can be sold for a net price of Rs. 96.50. The coupon rate of interest is 14 per cent per annum, and the debenture will be redeemed at 5 per cent premium on maturity. The firm's tax rate is 40%.compute the after-tax cost of debenture.

Related Discussions:- Compute the after-tax cost of debenture

Determine the action keep the price above market equilibrium, What actions ...

What actions could a government take in order to keep the price above market equilibrium? There are four basic possibilities here; 1) Minimum price; 2) A tax on the good

Macroeconomics, 8,000,000 people in the population who are 16 yrs of age an...

8,000,000 people in the population who are 16 yrs of age and older. 80% are willing to work. Currently 10% unemployment rate. a. how many people in labor force? b. How many are un

Change in the rate of population growth, Should the manufacture, supply and...

Should the manufacture, supply and use of tobacco be criminalised? Provide arguments for and/or against (relates to defining crime; concepts of deviance etc) Examine t

.economic regulation, are most local phone companies natural monopolies?

are most local phone companies natural monopolies?

Indifference curve, What is indifference curve and its properties?

What is indifference curve and its properties?

Cells electromotive force, Defining Cells Electromotive Force: The main ob...

Defining Cells Electromotive Force: The main objective of this particular aspect of Physical Chemistry is to examine the relation between free energies and the mechanical energy o

A consumer sensitivity to interest rates, Interest rate sensitivity can als...

Interest rate sensitivity can also be understood from another perspective. The total cost of a commodity is not just its price, but also what must be paid to borrow money to purch

Coase theorem, Discuss the possible solutions for private solutions (Coase ...

Discuss the possible solutions for private solutions (Coase Theorem) Question 8: Demand: P=100-Q Supply: P=Q MEB= 10 Discuss the possibility of over or under allocations of reso

High risk individuals, a) Describe and derive the equilibrium contract offe...

a) Describe and derive the equilibrium contract offered to high risk individuals. b) Describe and derive the equilibrium contract offe

Analysis the project status - bridge project, The government has undertaken...

The government has undertaken a highway bridge project that was originally projected to cost $2 million and provide benefits of $2.5 million. Unfortunately, the costs have been mu

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages