Question: ABC Ltd. has offered 15%, Rs. 2000 face value debentures incurring a flotation cost of 4% at a discount of 10%. What is the cost

ABC Ltd. has offered 15%, Rs. 2000 face value debentures incurring a flotation cost of 4% at a discount of 10%. What is the cost when the tax rate is 30%? What will be the cost those debentures when they are redeemable after 5 years at premium of 10%?

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