Cost of Capital (Part 4) - Redeemable Debt (2) - CMA/CA Inter - Financial Management

[@UmaIndla-c4y]

Current market value given

[@ramacharanab7806]

Sir very happy to be ur student

[@harshan.s1993]

Sir very informative

[@KIT-dk2py]

Thank you... It was very good lecture...

[@yobro5858]

sir I have a question in this ytm method, if there is flotation cost then the net proceeds received by a firm will be less than the investment amount of debenture holder which means the irr or ytm we calculate will not be the actual return of debenture holder, their actual return will be less than ytm, so does it actually gives the ytm?? plz reply

[@samebinezer8491]

Yeah bro adding some more points While calculating cost of debt we are considering the tax benefit arises because of paying interest to debenture holders...so overall YTM will be less than the IRR of the debt( from the debenture holders point of view) because our effectice cost of debt will be less than IRR calculated by debenture holder.. because of tax benefit our cost has been reduced..

[@hussnainhaider7327]

thanks sir from pakistan

[@swethar5060]

How to calculate pv factor

[@NabhAgrawal]

2:56 , sir u need not to be , as this is our basic education system which is copy cat , But with a caveat , i.e. no updation (&that's what is disastrous) ! (DU has same syllabi with no ytm method in its curriculum , running same syllabus(with very minor changes) for at leasts 15 years in name of NEP 😔 😔

[@NikhilJobanputra]

Thank you for your understanding. I hope sooner our education system gets better.

[@NabhAgrawal]

@@NikhilJobanputra 🙏