26. Calculation of Cost Of Debt With Problems from Cost Of Capital Chapter - Financial Management

[@devikascommercemanagement]

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[@bhavanashah6688]

Tysm ma'am I am so honored for finding your channel soo easy to understand once we concentrate

[@pradeepbhatnagar4848]

Vry well explained Ma'am the cost of Debt.bt as a mgmt Professional in my opinion a co.raise debt in variety of ways.It may borrow funds from financial institutions or public either in the form of public deposits or Debentures (bonds) for a specified period of time at a certain rate of interest.A debenture or bond may b issued at par or discount or premium as compared to its face value.The contractual rate of interest or the coupon rate forms the basis for calculating the cost of debt.Tax adjustment is important too as the interest paid on debt is tax deductible.The higher the interest charges the lower will be the amount of tax payable by the firm.This implies that the government indirectly pays a part of the lender's required rate of the return.It is important to remember that in calculation of the average cost of capital, the after yax cost of debt must be used, not the before tax cost of debt in brief in my opinion.Vry.nice nd inspiring Lecture.Thanx

[@navya622]

in the first question, the tax braket is 30% right? you have taken it as 15%?

[@aseenmd7940]

Same doubt arised for me also

[@satyxm9500]

Watching impatiently

[@thaneshnaik7090]

Thank you Ma'am for providing wonderfull class

[@bharathykumar4814]

1. Sol I=12,n=10,t=50/100=•50 ,np=fv-charge=100-5=95 ,rv=100+10=110. 12/100(1-.50)+1/10(110-95)/1/2(110+95)*100 =1/100*6+1.5/102.5*100 =1/100*75/1025*100 =7.317/100 =7.317%

[@TokyoRelives]

Hey why is the (I) not changed from percentage to .12

[@PottissaiCollection]

In 1st example in np u take it as 2,00,000 and 2nd model u took NP as 100

[@sharanyamitra]

Ma'am, please explain properly if you are using two different methods because in first case, you calculated the interest amount but in the second one, you took 12%...

[@RiyaRathore-xq5tn]

Your class are superb madam❤❤

[@blessingbellonzy]

Hello ma'am Why did you use 12 for the interest when calculating for the redeemable cost of debt...why not 0.12?

[@dikshagairola2265]

12% of 100 (face value)

[@Maheshbabu88974]

Hii

[@lavanya7105]

I am very Graceful to u mam thanks for your video because of u i have been passing in my exams 😅

[@Maheshbabu88974]

Hii

[@lavanya7105]

@@Maheshbabu88974 hii

[@Maheshbabu88974]

@@lavanya7105 medhi aa sem eppudu??

[@gangamganga518]

Thank you ma'am

[@nameelpalazhi7905]

VERY HELPFUL MAM

[@sameerdevil8875]

you are just amazing mam ❤

[@nikhilthakur851]

Ma'am over here in 1st example you calculated interest = 2,00,000*15% but you took 12% directly in 2nd example. I did not understand why? Don't we need to calculate 12% of 60,00,000

[@RahulYadav-es2cb]

Same doubt 🧐

[@sanuniddu5894]

Exactly

[@karinakousar7413]

Same problem 😢

[@varuncuts892]

17:39 explained here bro. Check it out I hope she's right

[@Priyanka-sl8hs]

Ma'am, pls answer this doubt on priority! 😢 You had corrected the formula at beginning, for the redeemable debentures...you said it is not 1/n, it is 1/2 Towards the ending of the video, you went back calculating with 1/n in the formula Sort of confused here now Thank you

[@shubhangpurvimath5339]

Guys, ma'am has said that you can use the interest value by either taking interest of Net proceeds i.e 12% of 2,00,000 or you can take 12% of Rupees 100 (face value). Either ways the answer will be same. Lemme know if this approach is correct or not.

[@KalpanaBegari-t1f]

SUPER MAM

[@shikshasthan8512]

in reedemable it is n only no need to change it to 2

[@bharathykumar4814]

1.sol 15/100*(1-.30)/100*100 15/100*.70 10.50/100 10.50%

[@ivicaserrao893]

Ma'am also this formula is correct no Kd= I + (P-NP)/n÷ ( P+NP)/2 (1-T) ×100 How to calculate if this the formula is?...

[@sampathsingh5158]

Surana Clg Folks, attendance time! Drop a '📚' if you're with me! 📚😄

[@ashutoshsingh2758]

mam next video when you will be posting?

[@parmi....]

mam Interest rate you take directly 12%? i think 12% of 60,00,000 = 7,20,000

[@SunitaDevi-ne3hj]

Yes same issue ,, can we put here i= 720000 and then what'll our NP as u gave mentioned 95 ?

[@satyxm9500]

​@@SunitaDevi-ne3hjinterest is calculated on face value ! In 1st solution the face value was 200000 but in 2nd case face value was only 100 not 600000

[@satyxm9500]

​@@SunitaDevi-ne3hjinterest is calculated on face value ! In 1st solution the face value was 200000 but in 2nd case face value was only 100 not 600000

[@sharanyamitra]

​@@satyxm9500bro in first case also, the face value is 100!

[@varuncuts892]

17:39 she explained it here

[@_Pratham_Kushwaha]

Ma'am in the second example the calculation is wrong, the end answer will be "6.5853” not 7.3.... Please correct it....

[@BPraveena-j7y]

Redeemable cost of debt first you said 2 in the place of n and then you saying n only after that you cut the video,,,, mammmmm please provide proper formula and proper process which could understand us

[@rukminiks8136]

Mam redeemable problem company issues debt is 12% na when we take 12 we would take it like 0.12 na because it Is in percentage

[@Maheshbabu88974]

I don't know 😢

[@thanuvasan2449]

This is doubt for me also

[@varuncuts892]

some says it is 12% of 100, so it is 12

[@nishthyadavcg1312]

Mam upload more videos please we have mba exam VTU Karnataka same syllabus

[@VivekGohil-ch9xh]

Why you took average method in redeemable debenture

[@its_me_pavan63]

2,00,000×100

[@gangamganga518]

Ma'am tax rate is 30%

[@arsatharsath158]

Today exam

[@devikascommercemanagement]

Good luck

[@icey5515]

maam, i dont want to sound rude but you yourself are confused with everything, u changed the formula u had written 3 times, and once without even telling you made a mistake about it. its hard to learn like this

[@tushi13948]

Patiently watch the video you will understand....she is also human and can do mistakes.... hope you get what I am trying to say

[@Lapulga1017]

​@@tushi13948she took Interest rate in problem 2 And interest amt in problem 1 What to take now?

[@lavanya7105]

Human errors are unavoidable so please respect her hard work 😢

[@IRM261]

I respectfully disagree, he is highlighting the flaws in the solution. While Deevika ma'am may not have acknowledged the mistake, a constructive addition could be a brief note in the description or comments acknowledging the error

[@Maheshbabu88974]

😮​@@tushi13948

[@bhumikajatoth-wy1hk]

Mam telugulo explain cheyyara please

[@Maheshbabu88974]

Telugu channel undhi ga 😅

[@BhogireddyPraveen]

telugu lo cheppandi medam

[@devikascommercemanagement]

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