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Raj Itd., issues 10% debentures at par for a total value of Rs 10,00,000. The debentures are redeemable after 10 year at a premium of

Raj Itd., issues 10% debentures at par for a total value of Rs 10,00,000. The debentures are redeemable after 10 year at a premium of 10%. If the tax rate is 40%, compute the cost of debentures to the company before tax and after tax.

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