15. The following data are related to M Ltd. and N Ltd. belonging to the same risk...

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15. The following data are related to M Ltd. and N Ltd. belonging to the same risk class.

Particulars M Ltd. N Ltd.

No. of ordinary shares (`10 each)

Market price per share (`)

6% debentures (`)

Profit before interest (`)

4,50,000 12 30,00,000 9,00,000 7,50,000 10 Nil 9,00,000 All profits after interest are distributed as dividend. You are required to explain how under M-M approach an investor holding 1% shares in M Ltd. will be better off in switching to N Ltd.

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Financial Management

ISBN: 9789352605606

1st Edition

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

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Question Posted: Jul 24, 2024 03:04 AM

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15. The following data are related to M Ltd. and N Ltd. belonging to the same risk...

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Financial Management

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