It will be beneficial to issue 5000 10% debentures. For detail... As

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.??????????

Question Posted / shahid raza,pgdm,lbs,g.noida

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Answer Posted / shahid raza,pgdm,lbs,g.noida

It will be beneficial to issue 5000 10% debentures.

For detail... Ask me

email:- mdshahid.raza@rediffmail.com
shahid.raza37@gmail.com

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