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%

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