Kd = 3.34%
solution
Net proceeds = 1,00,000 + 10,000 -(2÷100 ×1,10,000)
= 1,10,000 - 2200 =1,07,800
[tex]Net proceeds = 1,00,000 + 10,000 -(2÷100 ×1,10,000) = 1,10,000 - 2200 =1,07,800[/tex]
Kd = 1/NP (1-t)
= 9000÷1,07,800×(0.4) = 3.34%
[tex]Kd = 1/NP (1-t) = 9000÷1,07,800×(0.4) = 3.34%[/tex]
