Q. Axis Ltd is issuing 15% debentures ( face value Rs60). The net amount realized perdebenture is Rs54 and they are redeemable at par after 6 years. At a corporate tax rate of 40%, what is the cost of debt? (Solved)
1. 16.54%
2. 17.54%
3. 10%
4. 14.74%
- c. 10%