1-Alam Ltd has issued 8% debentures of 100,000 OMR having face value of OMR 100 each at a premium of 10%. The flotation cost payable is 10,000.If the debenture is redeemable after 10 Years at par, calculate the Net proceeds?

a.

110,000

b.

95,000

c.

90,000

d.

100,0000

2-Calculate Cost of debt from the following ? Interest = 10,000 Net Proceeds = 90,000 Market value = 100,000 Tax = 40%

a.

11.11%

b.

10%

c.

None of these

d.

6%