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Question 1:- Z Ltd. issues 1,00,000 14% debentures after 5 years at Rs.110 each. The commission payable to underwriters and brokers is 10% and the

Question 1:- Z Ltd. issues 1,00,000 14% debentures after 5 years at Rs.110 each. The commission payable to underwriters and brokers is 10% and the applicable tax rate is 45%. Calculate the cost of debt.

a) 12%

b) 11.70%

c) 13.50%

d) 14%

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