1.an Asset costs $ 10,000 and has a net book value of $ 100,
and an estimated life of ten (10) years, what would be the
annual depreciation using the straight line method?
Answer / prasanth
SLM basis 10000/10= 100N Would be the depreciation
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Assuming that a firm pays tax at a 50 per cent rate, compute the after tax cost of capital in the following cases: I. A 8.5 % preference share sold at par. II. A perpetual bond sold at par, coupon rate of interest being 7 per cent III. A ten year, 8 percent, Rs.1000 par bond sold at Rs.950 less 4 percent underwriting commission.
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