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Compute the after tax cost of debt

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Question - Romamnant Ltd., issues 9,000 8% debentures for Br. 1000 each at a discount of 5%. The commission payable to underwriters and brokers is Br. 30,000. The debentures are redeemable after 5 years. Compute the after tax cost of debt assuming a tax rate of 60%.

Reference no: EM132624271

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