P Ltd. issue ₹50,000 8% Debenture at a discount of 5%. The tax rate is 50%. The cost of debt capital is ............

CS Executive · Corporate and Management Accounting · PYQS · June 2021
P Ltd. issue ₹50,000 8% Debenture at a discount of 5%. The tax rate is 50%. The cost of debt capital is ............
(A) 5.42%
(B) 5.1%
(C) 4.42%
(D) 4.21%

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Management Accounting

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