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Example - cost of redeemable debt A company has 2 million 7 % debentures in issue. They are redeemable in five years at a premium

Example - cost of redeemable debt
A company has 2 million 7% debentures in issue. They are redeemable in five years at a premium of 30%. Current market value =120.
Corporation tax =25%
Use 5% and 10%
What is the post tax cost of the debentures?
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