Axis Ltd is issuing 15% debentures ( face value Rs60). The net amount – McqOptions

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1.	Axis Ltd is issuing 15% debentures ( face value Rs60). The net amount realized per debenture is Rs54 and they are redeemable at par after 6 years. At a corporate tax rate of 40%, what is the cost of debt?
A.	16.54%
B.	17.54%
C.	10%
D.	14.74%
Answer» D. 14.74%

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