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%
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