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A company raises Rs 1 00 000 by issue of 1000...

This question belongs to Commerce Miscellaneous In Commerce
Miscellaneous in Commerce
?

A company raises Rs. 1,00,000 by issue of 1000, 10% debentures of Rs. 100 each at a discount of 2% redeemable after 10 years. If the corporate tax rate is 40%, what would be the cost of capital?

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Correct Answer: Option C
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