Saved Bookmarks
| 1. |
A Ltd has a share capital of Rs. 1,00,000 divided into shares of Rs. 10 each. It has a major expansion programme requiring aninvestment of another Rs. 50,000. The management isconsidering the following alternatives for raising this amount.(a) Issuing of 5,000 equity shares of Rs. 10 each.(b) Issuing of 5,000, 12% preference shares of Rs.(c) Issuing of 10% debentures of Rs. 5,000.10 each.The company's present earnings before interest and tax areRs. 40,000 p.a. You are required to calculate the effect of each ofthe above modes of financing on the earning per sharepresuming EBIT continues to be the sameexpansion.even after |
|
Answer» sorryExplanation: hi not KNOWING the ANSWER BRO which grade you STUDY |
|