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A company has 5% debentures worth N500 000 ordinary share capital N 2 000 000,…

A company has 5% debentures worth N500 000 ordinary share capital N 2 000 000, and preference shares N1500 000. if the company made a profit of N 1 000 000, the debenture interest would amount to
  • A.
    N 1 000 000
  • B.
    N 500 000
  • C.
    N 50 000
  • D.
    N 25 000
Correct Answer: Option D
Explanation