Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company needs Rs.10,00,000/- for modernization. The following 3 plans are available a) Issue 100,000 equity shares of Rs.10 per share b) Issue of 50,000

A company needs Rs.10,00,000/- for modernization. The following 3 plans are available a) Issue 100,000 equity shares of Rs.10 per share b) Issue of 50,000 equity shares of 10 per share & 5,000 debentures of Rs.100 each at 14% rate of interest. C) Issue of 50,000 equity shares & balance through 10% preference shares. If the company's EBIT are Rs. 50,000/-, Rs. 100,000/-, Rs. 120,000/- and Rs. 160,000/-. What will be the EPS under each of the 3 financial plans. Assume Income tax rate 25%.(20)A company needs Rs.10,00,000/- for modernization. The following 3 plans are available a) Issue 100,000 equity shares of Rs.10 per share b) Issue of 50,000 equity shares of 10 per share & 5,000 debentures of Rs.100 each at 14% rate of interest. C) Issue of 50,000 equity shares & balance through 10% preference shares. If the company's EBIT are Rs. 50,000/-, Rs. 100,000/-, Rs. 120,000/- and Rs. 160,000/-. What will be the EPS under each of the 3 financial plans. Assume Income tax rate 25%.(20)A company needs Rs.10,00,000/- for modernization. The following 3 plans are available a) Issue 100,000 equity shares of Rs.10 per share b) Issue of 50,000 equity shares of 10 per share & 5,000 debentures of Rs.100 each at 14% rate of interest. C) Issue of 50,000 equity shares & balance through 10% preference shares. If the company's EBIT are Rs. 50,000/-, Rs. 100,000/-, Rs. 120,000/- and Rs. 160,000/-. What will be the EPS under each of the 3 financial plans. Assume Income tax rate 25%.(20)A company needs Rs.10,00,000/- for modernization. The following 3 plans are available a) Issue 100,000 equity shares of Rs.10 per share b) Issue of 50,000 equity shares of 10 per share & 5,000 debentures of Rs.100 each at 14% rate of interest. C) Issue of 50,000 equity shares & balance through 10% preference shares. If the company's EBIT are Rs. 50,000/-, Rs. 100,000/-, Rs. 120,000/- and Rs. 160,000/-. What will be the EPS under each of the 3 financial plans. Assume Income tax rate 25%.(20)A company needs Rs.10,00,000/- for modernization. The following 3 plans are available a) Issue 100,000 equity shares of Rs.10 per share b) Issue of 50,000 equity shares of 10 per share & 5,000 debentures of Rs.100 each at 14% rate of interest. C) Issue of 50,000 equity shares & balance through 10% preference shares. If the company's EBIT are Rs. 50,000/-, Rs. 100,000/-, Rs. 120,000/- and Rs. 160,000/-. What will be the EPS under each of the 3 financial plans. Assume Income tax rate 25%.(20)A company needs Rs.10,00,000/- for modernization. The following 3 plans are available a) Issue 100,000 equity shares of Rs.10 per share b) Issue of 50,000 equity shares of 10 per share & 5,000 debentures of Rs.100 each at 14% rate of interest. C) Issue of 50,000 equity shares & balance through 10% preference shares. If the company's EBIT are Rs. 50,000/-, Rs. 100,000/-, Rs. 120,000/- and Rs. 160,000/-. What will be the EPS under each of the 3 financial plans. Assume Income tax rate 25%.(20)A company needs Rs.10,00,000/- for modernization. The following 3 plans are available a) Issue 100,000 equity shares of Rs.10 per share b) Issue of 50,000 equity shares of 10 per share & 5,000 debentures of Rs.100 each at 14% rate of interest. C) Issue of 50,000 equity shares & balance through 10% preference shares. If the company's EBIT are Rs. 50,000/-, Rs. 100,000/-, Rs. 120,000/- and Rs. 160,000/-. What will be the EPS under each of the 3 financial plans. Assume Income tax rate 25%.(20)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Ecological Money And Finance

Authors: Thomas Lagoarde-Segot

1st Edition

3031142314, 978-3031142314

More Books

Students also viewed these Finance questions

Question

Solve the following equations. 3x + 5y = 11 2x- y=16

Answered: 1 week ago