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



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

Do you think role of leaders and managers is same?

655


What is the difference between Bill of Exchanges and Certificate of Deposit, Cheques, Demand Drafts and other Money Market Instruments?

672


Who conducts national banking entrance exam (nbet)?

576


What Is A Discharge?

649


What is RFID? Tell its advantages?

636






How is bandhan bank different from other public and private banks?

629


Differentiate between P&L A/c and Balance Sheet?

695


What is a letter of demand?

655


Explain what is cash equity?

641


What is the post- dated cheque?

673


Give the difference between cheques and demand draft?

714


What is Private Banking?

653


What do you know about CORE Banking Solutions?

637


How can social media be used for marketing?

606


Tell something about Pradhan Mantri Jan Dhan Yojna?

611