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The outstanding debentures of Power Limited are priced at R898 each. These debentures have a 10% coupon and pay interest annually. The debentures are non-redeemable

The outstanding debentures of Power Limited are priced at R898 each. These debentures have a 10% coupon and pay interest annually. The debentures are non-redeemable and have a par value of R1 000 each. The companys tax rate is 28%. What is Power Limiteds after-tax cost of debt?

A 7.2%

B 10%

C 11.14%

D 8.02%

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