$8,00.000 The present earning of the company before interest & taxes are 10% of the invested capital every year. The company is in need of $ 2,00,000 for purchasing a new equipment and it is estimated that additional investment will also produce 10% earning before interest & taxe every year. The company has asked your advice as to whether the requisite amount be obtained in form of 10% Debenture Or equity shares of $100 each to be issued at par. Examine the problem in all its bearing and advice firm if the corporate tax rate is 50%. me left 1:27:13 ELS 17 8 18 DIG 4 $8,00.000 The present earning of the company before interest & taxes are 10% of the invested capital every year. The company is in need of $ 2,00,000 for purchasing a new equipment and it is estimated that additional investment will also produce 10% earning before interest & taxe every year. The company has asked your advice as to whether the requisite amount be obtained in form of 10% Debenture Or equity shares of $100 each to be issued at par. Examine the problem in all its bearing and advice firm if the corporate tax rate is 50%. me left 1:27:13 ELS 17 8 18 DIG 4