Question
A firm, which is all equity financed, has a market value of INR 2000 crores. The firm has announced that it will issue debt of
A firm, which is all equity financed, has a market value of INR 2000 crores. The firm has announced that it will issue debt of 400 crores at 15% interest rate, which is going to be carried forward in perpetuity. The prevailing tax rate is 20% and the number of shares of the firm is 20 crores. What is the per share price after the announcement?
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Economics And Personal Finance
Authors: Irvin Tucker, Joan Ryan
1st Edition
1133562108, 978-1133562108
