What is profit ratio?
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We have outstanding 100000 equity of 10 each. For expansion of business we need Rs.500000. which of the following option will be beneficial for equity shareholders ? If net profit before interest & tax is 300000 &tax rate is 40%.(1)-50000 equity sh of Rs 10 each,(2)-10% Pref Sh.. Rs 100 each,(3)- 5000 10% debentures.??????????
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