COST OF DEBT CAPITAL Questions & Answers (1) R Ltd issued Rs. 2,00,000 # % debentures at pas." The tax rate applicable to the Company is 40%. Compute the Cost of debt Capital. (a) P Ltd issued Rs. 2,00,000 7% debentures at a Premium of 20%. The tax rate applicable to the Company is 50%. Compute the Cost of debt Capital. :/) (3) S Ltd issued Rs. 2,00,000 7% debentures at a discount of 4%. The tax rate is 40%. Compute the Cost of Capital. (4) T htd issued Rs. 3,00,000 8% debentures at a Premium of 9%. The floatation Costs are 2.5% The tax rate applicable is 50%- Compute the Cost of debt Capital.