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1. Assume that ABC Ltd has equity share capital of T153030!) divided into shares of RslS each. The company wishes to raise additional total capital
1. Assume that ABC Ltd has equity share capital of T153030!) divided into shares of RslS each. The company wishes to raise additional total capital of T for expansion through 353,110,000 in equity shares and {13,00,001} in debts at 10%. The EBIT of the company is {3,011,000 and tax rate is 50%. Calculate EPS. Suggest what will happen to EPS if entire capital was raised through debts. {10 Marks)
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
5th edition
