Calculate after tax cost of capital

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Question - Z company ltd issued 12% debenture of rs 100 each at a discount of 10%, 1 year back interest are paid annually at the end of each year. 50% of total debenture are to be redemed at par after 5 year from the time of issue and remaining to be redeemed at premium of 5% after 6 year from the time of issue if the marginal tax rate is 30%. Calculate after tax cost of capital.

Reference no: EM132503672

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