If a company issues new share capital to redeem debentures, then:

Related MCQs

• A company should arrange the capital structure in such a way that there is maximum flexibility in the capital and cost of capital is
• Lei-Feng, Inc.'s $100 par value preferred stock just paid its $10 per share annual dividend. The preferred stock has a current market price of $96 a share. The firm's marginal tax rate (combined federal and state) is 40 percent, and the firm plans to maintain its current capital structure relationship into the future. The component cost of preferred stock to Lei-Feng, Inc. would be closest to .
• Cost Capital for Equity Share Capital does not imply that:
• Use of Preference Share Capital in Capital structure
• The capital raised through equity share is ---------- for the company
• Cost of Capital for Bonds and Debentures is calculated on:
• 1,00,000; 10% Debentures of Rs. 100 each of company, the interest payable for quarter is:
• In optimal capital structure the company’s cost of capital will be
• 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
• Authorised capital of a company is Rs.5 lac, 40% of it is paid up. Loss incurred during the year is Rs.50,000. Accumulated loss carried from last year is Rs.2 lac. The company has a Tangible Net Worth of