Formula for cost of capital

Narender Kumar (Articleship completed) (25 Points)

20 October 2010  

hello experts,, 

can you tell me the formula of Kp and Kd

if Market price of Preference shares and Debenture are given 

in the question. it is also to note that these securities are 

redeemabable at par at N=10,

Narender

Que :100, per debenture redeemable at par has 2% flotation cost and 10 years of 

maturity. the MP per debenture is105/- 

Wht will be Kd in this case.