Mayers & Sons have issued debentures of $ 300,000 at 4% interest rate annually. The company also had taken a loan of $750,000 from the bank at a 6% rate of interest. To meet their capital requirement, the company also took a short-term loan of $500,000 at 3%. You were required to calculate Mayers & Sons. cost of debt during the year.r 

a. 4.65% 

b. 5.55% 

c. 6.25% 

d. 5.48%