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A company has 180 million of 10% debentures having a par value of 100 per share. The debentures are redeemable after 3 years and interest

A company has 180 million of 10% debentures having a par value of 100 per share. The debentures are redeemable after 3 years and interest is paid annually. The current ex-interest debenture market value is 103. The pre-tax cost of debentures on the basis of the present value of future cash flow shall be equal to?

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