accounting

In the current year, a corporate firm has reported a profit of Rs. 65 lakh, after paying taxes @ 35 percent. On close examination, the analyst ascertains that the current year's income includes: (1) extraordinary income of Rs 10 lakh and (ii) extraordinary loss of Rs. 3 lakh. Apart from existing operations, which are normal in nature and 360 15 10 are likely to continue in the future, the company expects to launch a new product in the coming year. Revenue and cost estimates in respect of the new product are as follows: Rs ( lakh Sales Material cost Labour cost additional) Allocated fixed costs Additional fixed costs From the above information determine the market price per equity share (based on future earnings). For this purpose, you are provided the following date: (1) The company has 1,00,000 11% Preference shares of Rs. 100 each, fully paid-up. (1) The company has 4,00,000 Equity shares of Rs. 100 each, fully paid-up. (H) P/E ratio is 8 times. 5 8