Page 39 - F2 Integrated Workbook STUDENT 2019
P. 39

Cost of capital





                  Example 2.5



                  The 12% long-dated bonds of an entity are quoted at $96 ex int. Corporation tax
                  is payable at 22%.

                  Required

                  Calculate the net of tax cost of debt. Give your answer to 2 decimal
                  places.





























































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