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Cost of capital

What should be net proceeds if issue price and market price is given?


shamanth rm

shamanth rm

CA Inter

120

02-Apr-20 21:41

27

Answers (8)

It has been taken as book value while calculating WACC

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shamanth rm

shamanth rm

CA Inter

120

02-Apr-20 21:56

If debentures or pref. Shares are redeemable then take issue price, if issue price isn't given then take market price, if issue price and market price both are not given then take Face value.


K K K

K K K

CA Inter

13K+

03-Apr-20 08:57

If irredeemable debentures take Market price(mp), If MP is not given take issue price, if both aren't given take Face value. For equity market price.


K K K

K K K

CA Inter

13K+

03-Apr-20 12:40

And in case of issue of new shares you need to take issue price right?


shamanth rm

shamanth rm

CA Inter

120

03-Apr-20 12:43

Generally for shares market price only, but if both issue price and market price are given then, for ke(equity) issue price and for ks( retained earnings) market price bro


K K K

K K K

CA Inter

13K+

03-Apr-20 14:25

Refer 24th sum in Indigo learn material


K K K

K K K

CA Inter

13K+

03-Apr-20 14:26

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