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.??????????
Answer Posted / jagdish
(2)
Profit-300000
less-inter-2000
EBIT-280000
LESS-112000
PAT-168000
(1)PROFIT-300000
TAX-120000
PAT-180000
Is This Answer Correct ? | 3 Yes | 1 No |
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