Capital structure of a company includes the following: (i) Equity share capital: 60,000 shares of face

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Capital structure of a company includes the following:

(i) Equity share capital: 60,000 shares of face value ₹100 each

(ii) Preference shares capital: 10,000, 10% shares of face value ₹100 each

(iii) Debt of 20,00,000 bearing a coupon rate of 12%

During the year, the company earned EBIT of ₹35,00,000. The equity capitalization rate for this risk category of the company is 18% and the income of the company is subject to 30% tax. Calculate the value of company.

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Financial Accounting

ISBN: 9780071078023

1st Edition

Authors: Dhanesh K. Khatri

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Question Posted: Dec 18, 2023 11:14 AM

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Capital structure of a company includes the following: (i) Equity share capital: 60,000 shares of face

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