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A Ltd. has the following Capital structure as on 31st March 20xx. Equity Capital Rs.520 Crores. Face Value of each share Rs. 5 General Reserve
A Ltd. has the following Capital structure as on 31st March 20xx. Equity Capital Rs.520 Crores. Face Value of each share Rs. 5 General Reserve Rs.310 Crores Securities Premium A/C Rs. 120 Crores Profit & Loss Account Rs.110 Crores Revaluation reserve Rs. 180 Crores Loan Funds Rs. 1000 Crores The Board approved a Buyback of the maximum permissible number of equity shares considering the huge surplus funds available. Market price of each share is Rs.40. In order to ensure success of Buyback, the company decided to offer an amount which is 25% over market price. A. Find out the maximum number of shares that can be bought back in the light of the above information. (4 Marks ) B. Calculate the maximum number of shares that can be bought back, where the Loan funds are i.Rs.1000 Crores i. Rs.1500 Crores iji. Rs.2500 Crores. (6 Marks)
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