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State the term - Redemption
Redemption is repayment of debt security at or before maturity. Redemption could at par or at a premium to face value. A debt security will be redeemed before maturity if issuer feels that he can borrow same amount at a lower rate of interest or he doesn't require the funds any longer. If there is a premature redemption (redemption before maturity date), a premium is generally paid to the debenture holders.
#questiBabar Corporation''s present capital structure, which is also its target capital structure I, is 40% debt and 60% common equity. Next year''s net income is projected to be R
what is amount of cash dividend if investor buys share of 100 at premium of 400.
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