c. MRM ltd has a ksh. 4,000,000 irredeemable bond with an interest rate of 12%....
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Accounting
c. MRM ltd has a ksh. 4,000,000 irredeemable bond with an interest rate of 12%. The corporation tax applicable to the company is 30%.
Required:
Calculate the after-tax cost of debt to MRM (2 marks)
Define the following terms (8 marks)
i. Par or Face Value
ii. Coupon Rate
iii. Maturity Date
iv. Required Return
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