Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Answer fast please in 5-10 minutes molett 227047 Oon 2 Not yet wered Marked out of 10.00 Flag Question A Ltd. has the following Capital

Answer fast please in 5-10 minutes
image text in transcribed
molett 227047 Oon 2 Not yet wered Marked out of 10.00 Flag Question A Ltd. has the following Capital structure as on 31 March 2010 Equity Capital Rs.520 Crores Face Value of each share Rs, 5 General Reserve Rs 310 Crores Securities Premium Ac 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 hugo 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) 8. Calculate the maximum number of shares that can be bought back, where the Loan funds are 1.Rs.1000 Crores Il Rs.1500 Crores , Rs.2500 Crores. (6 Marks)

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_2

Step: 3

blur-text-image_3

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

Nft Artist Coach For Beginners

Authors: George Buterin

1st Edition

979-8422352258

More Books

Students also viewed these Finance questions

Question

1.Why Is the Aggregate Demand Curve Downward Sloping?

Answered: 1 week ago