Rasta ltd has 10,000 shares of rs7 each, rs10,000 12% debentures and 20,000rs as short term loan at 10%. the tax rate of company is 30%. Assume the cost of equity capital as 20%. answer the following questions: Cost of debentures is? (a) 20% (b) 8.4% (c) 7% (d) 11%
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yeah right
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