Question
A Company has the following capital structure. Equity share capital 10% Prof. share capital 8% Debentures Rs. 1,00,000 1,00,000 1,25,000 The present EBIT is
A Company has the following capital structure. Equity share capital 10% Prof. share capital 8% Debentures Rs. 1,00,000 1,00,000 1,25,000 The present EBIT is Rs. 50,000. Calculate the financial leverage assuring that the company is in 50% tax bracket.
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
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