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<p>(<strong>a) Cost of Equity Shares, </strong></p> <p><strong>(b) Cost of Preference Shares,</strong></p> <p><strong>(c) Cost of Debentures,</strong></p> <p><strong>d) Cost of Retained Earnings.</strong></p> <p> </p>
(c) Cost of Debentures
Interest on debentures is tax deductible.
Option C: Cost of Debentures
Option C Cost of Debentures.
As Tax is applicable on the interest cost associated with the debentures.
D is correct, debenture holder will make tax adjustment in calculation of cost of capital of their own retained earnings.
d) Cost of Retained Earnings.
ANSWER C
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