Ranu & Co. has issued 10% debenture of face value ₹100 for ₹10 lakh. The debenture is expected to be sold at 5% discount. It will also involve floatation costs of ₹10 per debenture. The debentures are redeemable at a
CS Executive · Financial and Strategic Management · PYQS · December 2023
Ranu & Co. has issued 10% debenture of face value ₹100 for ₹10 lakh. The debenture is expected to be sold at 5% discount. It will also involve floatation costs of ₹10 per debenture. The debentures are redeemable at a premium of 10% after 10 years. Calculate the cost of debenture if the tax rate is 30%.
Answer & Explanation:
Correct Answer: Option (A)
Official answer key: (A).
Topics: Financial Management
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