A bond issue may be retired by
A. | calling the bonds if there is a call feature. |
B. | converting the bonds (if convertible) into common stock. |
C. | making a single-sum payment at final maturity. |
D. | all of the above. |
Option: D Explanation : Click on Discuss to view users comments. |
Cost of debt capital can be computed by
A. | Kd = I + (RV - NP/N)/RV + NP/2 x 100 |
B. | Kd = NP/R - V |
C. | Kd = RV - NP/2 x 100 |
D. | Kd = RV - P/NP |
Option: A Explanation : Click on Discuss to view users comments. |
Which is the importance of the concept of cost of capital?
A. | Helpful in comparative analysis of various sources of finance |
B. | Helpful in Capital structure decisions |
C. | Helpful in Capital budgeting process |
D. | All of the above |
Option: D Explanation : Click on Discuss to view users comments. |