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Cost of Capital for Bonds and Debentures is calculated on:

<p> <strong>(a) Before Tax basis, </strong></p> <p><strong>(b) After Tax basis,</strong></p> <p><strong>(c) Risk-free Rate of Interest basis,</strong></p> <p><strong>(d) None of the above.</strong></p>

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Question added by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date Posted: 2014/09/20
Sara Naeem
by Sara Naeem , Trainee Finance officer , Wah Brass Mill

Many thanks Sir for your invitation agree with all professionals B is answer After Tax basis.

Shamel Rashad, CMA
by Shamel Rashad, CMA , Finance Manager , Bavaria Alarm S.A.E.

B. After Taxes.

 

This is the reason debts are generally considered a cheaper source of financing, due to the tax-deductible interest expenses.

Deleted user
by Deleted user

(b) After Tax basis,

Deleted user
by Deleted user

Answer B is correct

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

Answer  b

 

FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

option b is the correct 

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