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If a Company Has on Issue Debentures Paying a Coupon

Question 13

Multiple Choice

If a company has on issue debentures paying a coupon rate of 12% p.a.and the market yield on similar securities is 18 per cent,what is the correct cost of debt the company should use when estimating the WACC?


A) None of the given options.
B) 15%
C) 12%
D) 18%

Correct Answer:

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