Ten years ago, Brown Limited issued GH¢2.5 million of 6% discounted debenture at GH¢98 per 100 nominal. The debentures are redeemable in 5 years from now at GH¢2 premium over nominal value. They are currently quoted at GH¢80 per debenture ex-interest. Brown Limited pays corporate tax at the rate of 30%.
You are required to calculate cost of debt after tax. (4 marks)
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ALTERNATIVELY:
ALTERNATIVELY:
