GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Cost of Capital for Bonds and Debentures is calculated on
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After Tax basis
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Before Tax basis
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Risk-free Rate of Interest basis
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None of the above
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Explanation:
Detailed explanation-1: -Answer: “"cost of preference share"” is the right answer.
Detailed explanation-2: -Cost of Irredeemable preference shares (KP) = Dp / NP Where, DP = Preference dividend per share NP = Net proceeds from the issue of preference shares.
Detailed explanation-3: -Short definition A debenture is a type of long-term business debt not secured by any collateral. It is a funding option for companies with solid finances that want to avoid issuing shares and diluting their equity.
There is 1 question to complete.