Cost of Capital for Bonds and Debentures is calculated on:

Related MCQs

• Foreign bonds, are foreign currency bonds and sold at the country of that currency and are subject to the restrictions as placed by that country on the -------------------
• A company should arrange the capital structure in such a way that there is maximum flexibility in the capital and cost of capital is
• Axis Ltd is issuing 15% debentures ( face value Rs60). The net amount realized per debenture is Rs54 and they are redeemable at par after 6 years. At a corporate tax rate of 40%, what is the cost of debt?
• If a company issues new share capital to redeem debentures, then:
• A company can increase its value and reduce the overall cost of capital by increasing the proportion of debt in its capital structure according to ----- approach
• If the weighting of equity in total capital is 1/3, that of debt is 2/3, the return on equity is 15% that of debt is 10% and the corporate tax rate is 32%, what is the Weighted Average Cost of Capital (WACC)?
• EVA= ___________ - (Equity capital x % of cost of equity capital
• Cost Capital for Equity Share Capital does not imply that:
• According to MM approach, two identical firms in all respects except their capital structure can not have different market values or cost of capital because of-----
• In optimal capital structure the company’s cost of capital will be