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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

410

02-Apr-20 21:41

81

Answers (8)

It has been taken as book value while calculating WACC

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Thread Starter

shamanth rm

shamanth rm

CA Inter

410

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 Final

16K+

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 Final

16K+

03-Apr-20 12:40

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


Thread Starter

shamanth rm

shamanth rm

CA Inter

410

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 Final

16K+

03-Apr-20 14:25

Refer 24th sum in Indigo learn material


K K K

K K K

CA Final

16K+

03-Apr-20 14:26

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