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Cost of Capital

Financial Management

*Since yield on similar type of debentures is 16 per cent, Why the company would be required to offer debentures at discount when the company issuing @ 15%

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Prethivi Rajan

Prethivi Rajan

CA Final

9K+

14-Apr-23 02:12

218

Answers (1)

Best Answer

Instead of investing in this company the guy can invest in some other company and can get 16%. The company is issuing below the current yield of the market so they are issuing the debentures on a discount.


Ganesh U

Ganesh U

CA Inter

6K+

14-Apr-23 07:19

Offer