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A company is contemplating to raise additional Fund of Rs . 2 0 , 0 0 , 0 0 0 for setting up a project.
A company is contemplating to raise additional Fund of Rs for setting up a project. The company expects EBIT of Rs from the project.Following alternating plants are available:i To raise Rs by way of equity share of Rs each.ii To raise Rs by way of equity shares and Rs by way of debt @ iii To raise Rs by way of equity and rest Rs by way of preference shares @ iv To raise:Rs by equity sharesRs. by debt @ Rs by preference shares.The company is in Tax bracket which option is best?
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