investors of ril have a chance to but ril shares at rs.1,257 as compared to its present market price of rs.1,433.existing shareholders who held ril shares in their demat account on may 14 are eligible to apply for the issue in 1:15 ratio.this means for every 15 shares held by them they can apply for one share at ra.1,257 apiece.Also,you do not have to pay the entire Rs.1,257 at one go.At the time of application,you have to pay 25% of the amount i.e. Rs.314,25 another 25% of the amount i e. will be paid by the investor in May 2021( after 12 months) and the remaining 50% i.e. Rs.628.50 will be paid in November 2021(after 18 months) on-call by the company.If discount rate is 10% what will be the effective cost for this plan?
investors of ril have a chance to but ril shares at rs.1,257 as compared to its present market price of rs.1,433.existing shareholders who held ril shares in their demat account on may 14 are eligible to apply for the issue in 1:15 ratio.this means for every 15 shares held by them they can apply for one share at ra.1,257 apiece.Also,you do not have to pay the entire Rs.1,257 at one go.At the time of application,you have to pay 25% of the amount i.e. Rs.314,25 another 25% of the amount i e. will be paid by the investor in May 2021( after 12 months) and the remaining 50% i.e. Rs.628.50 will be paid in November 2021(after 18 months) on-call by the company.If discount rate is 10% what will be the effective cost for this plan?
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