QUESTION 1 A company issued R100-million in 14% debentures of R100 each, redeemable at par after five years. Calculate the cost of debt if the debentures are issued at 10% premium with 5% flotation cost. Assume 30% corporate tax. QUESTION 2 CT Ltd. has R1,000,000 allocated for capital rationing purposes. The following proposals and associated profitability indexes have been determined. Project Investment required ® Present […]