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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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