Compute the after-tax cost of debt if: (a) Interest rate is 12% and tax rate is 30%. (b) Interest rate is 10% and tax rate is 35%. A company issues 10-year debenture for Rs 1,00,000 with 8% coupon....

Compute the after-tax cost of debt if:

(a) Interest rate is 12% and tax rate is 30%.

(b) Interest rate is 10% and tax rate is 35%.

A company issues 10-year debenture for Rs 1,00,000 with 8% coupon. The floatation cost is Rs 3,000 and the tax rate is 30%. Find the cost of debt.