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Items Jamuna (Taka) Surma (Taka) Current Assets 65,00000 50,00000 Total assets 1,00,00000 1,00,00000 Total Equity( all common) 90,00000 50,00000 Total Debt 10,00000 50,00000 Annual Interest

Items

Jamuna (Taka)

Surma (Taka)

Current Assets

65,00000

50,00000

Total assets

1,00,00000

1,00,00000

Total Equity( all common)

90,00000

50,00000

Total Debt

10,00000

50,00000

Annual Interest

1,00000

5,00000

Total Sales

2,50,00000

2,50,00000

EBIT

62,50000

62,50000

Net Income

36,90,000

3,450000

In which way the large debt of Surma Fabrics made it more profitable than Jamuna? Is there any risk to the share holders of Surma for having more debt?

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