Cost of capital

Flotation cost should be calculated on issue price. If issue price is not given, then market price shall be considered.

vishwam mandepudi

Qualified CA

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20-Sep-21 10:11

In this for kd and kp then calculated the floatation cost as a percentage on face value i.e 100

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Deepak Thinu

CA Final

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20-Sep-21 10:43

Source icai answer key for jan 21 exam

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Deepak Thinu

CA Final

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20-Sep-21 11:06

Right. The flotation cost is expressed as a percentage of the issue price and is incorporated into the price of new shares as a reduction.

Aman Mahajan

CA Final

★ 19K+

20-Sep-21 12:18

In this case debentures and preference shares are redeemable so we should consider book value as rv

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Deepak Thinu

CA Final

★ 2K+

20-Sep-21 13:10

If they said the issue price as 100 then the above is right

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Deepak Thinu

CA Final

★ 2K+

20-Sep-21 16:05