14. X Ltd. is considering two alternative plans. Following information relates to these plans: Plan-A Plan-B Equity

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14. X Ltd. is considering two alternative plans. Following information relates to these plans:

Plan-A Plan-B Equity Share (`10 each) (`) 2,00,000 1,00,000 12% Debenture (`) — 1,00,000 Profit after tax (`) 28,000 19,600 Price-Earning ratio 11 7.5 Which of the plans is preferable considering the wealth maximisation objective?

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Financial Management

ISBN: 9789352605606

1st Edition

Authors: Swapan Sarkar, Bappaditya Biswas, Samyabrata Das, Ashish Kumar Sana

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