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a-company-issues-debentures-of-each-for-an-amount-aggregating

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%

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