Q.
A company issues 11% debentures of ` 100 each for an amount aggregating ` 2,00,000 at 10% premium, redeemable at par after 5 years. The company tax rate is 40%. The cost of debt is
[A] 4.38%
[B] 11%
[C] 5.5%
[D] 10%
Answer & Explanation
Answer: 4.38%