A company has 15 perpetual debt of 10000000 the tax rate


Question: A Company has 15% perpetual debt of $ 100000.00. The tax rate is 50%. Determine the cost of capital (before tax as well as after tax) assuming the debt is isued at

(i) par,

(ii) 10% discount, and

(iii) 10% premium.

Solution Preview :

Prepared by a verified Expert
Finance Basics: A company has 15 perpetual debt of 10000000 the tax rate
Reference No:- TGS02488597

Now Priced at $15 (50% Discount)

Recommended (95%)

Rated (4.7/5)