04 05 This is a subjective question, hence you have write your answer in the Text-Field given below. 07 Initial Year Los

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04 05 This Is A Subjective Question Hence You Have Write Your Answer In The Text Field Given Below 07 Initial Year Los 1 (26.74 KiB) Viewed 80 times

04 05 This is a subjective question, hence you have write your answer in the Text-Field given below. 07 Initial Year Loss Ltd (IYL) made a huge loss of Rs 60 crores) in the previous financial year. IYL is confident of making profits of Rs 10 crores p.a. (assumed uniform) for several years to come. IYL has been advised that the tax regulations allow a set off of the past losses against profits in the future (subject to conditions) thereby attracting a reduced/nil tax liability in future Further, you were taught in FM course that cost of debt needs to be tax-adjusted for calculating the overall cost of capital What are the arguments, FOR and/or AGAINST, for doing the tax adjustment for calculating the cost of capital for IYL 151 Options