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? (1) 6.82% (2) 5.98% (4) 5.5% (3) 6.18%
ohh yeah i did mistake... sry for that... bt according to formula u hv to add after adding and dividing that by 2 u'll get 99000......6200/ 99000 then u get 0.062 ...now multiply i...