Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 2. What in the after-tax cent of debt for Sind Aladigar under cachop Sand Abadigar's Sagar Mill Limited was incorporated in Pakistan on January

image text in transcribedimage text in transcribed

Question 2. What in the after-tax cent of debt for Sind Aladigar under cachop Sand Abadigar's Sagar Mill Limited was incorporated in Pakistan on January 23, 1984 as a public limited company. The Company in principally in the manufacturing and sale ofgar. Please see below the balance to Sind Ahadiyar Milk. Al figures millis. Assets Liabilities Fised to Debat 300 Cert 1000 JA Fay 1500 Sand Abadiyar had taken deht by iwaing long-term ben that had a cupon rate of 10% The bends are currently rated and are cling at a sild of 12% (the market value of the lede is 80% of the face valus). Send Abadear currently has 30 minuttending Shares of Sind Ahadgar are currently trading at Rx & per share. Sind Alugar para a dividend of Rs 4 per dare. Sind Abadger has a P/Eraton 10. Bet of Sind Ahadaris Currently 12. In Pakistan six-month Twaranybill rate in 8% and tax rate is 417% Sand Abadgar in condering a perject that requires an initial investment of Rs 100 million and their finance department has paspand the following projected income statement ERIT $20 million - Interest $ 4 million ERT $16 million - Tax $6.40 milion Net Income = $9.60 million The fire department says that depreciation for the project is expected to be a 5 million year. This post in plastive. There a principal payments.com the debt and it too is perpetual Sand Abdggar is slendinga mchange in its capital structure. It has become 1. louc Ru 1 billion in new stock and replace half of its outstanding debt. This will make it a AAA rated form. In Pakistan AA rated debt in yadding 11% in the market. 2. los1 lille inne debt and buy back stock. This will do its rating to A In Pakistan A-rated debt is acking 13 in the market. 3. Ieue Re 3 bilice in new debt and bay back track This will drop its rating to CCC In Pakistan CCCrated debt in ywking is in the marketplace Luckily or unlucka, CEO of Send Aldaris friend of your father and has come to your house for a dent. Your father is very pad of you and asks the CEO to test your kerleden finance, Ege of CEO Sind Abadigar light up instantly. He also the Gollowing questionight way. Make your father pead and show complete working Question 2. What in the after-tax cent of debt for Sind Aladigar under cachop Sand Abadigar's Sagar Mill Limited was incorporated in Pakistan on January 23, 1984 as a public limited company. The Company in principally in the manufacturing and sale ofgar. Please see below the balance to Sind Ahadiyar Milk. Al figures millis. Assets Liabilities Fised to Debat 300 Cert 1000 JA Fay 1500 Sand Abadiyar had taken deht by iwaing long-term ben that had a cupon rate of 10% The bends are currently rated and are cling at a sild of 12% (the market value of the lede is 80% of the face valus). Send Abadear currently has 30 minuttending Shares of Sind Ahadgar are currently trading at Rx & per share. Sind Alugar para a dividend of Rs 4 per dare. Sind Abadger has a P/Eraton 10. Bet of Sind Ahadaris Currently 12. In Pakistan six-month Twaranybill rate in 8% and tax rate is 417% Sand Abadgar in condering a perject that requires an initial investment of Rs 100 million and their finance department has paspand the following projected income statement ERIT $20 million - Interest $ 4 million ERT $16 million - Tax $6.40 milion Net Income = $9.60 million The fire department says that depreciation for the project is expected to be a 5 million year. This post in plastive. There a principal payments.com the debt and it too is perpetual Sand Abdggar is slendinga mchange in its capital structure. It has become 1. louc Ru 1 billion in new stock and replace half of its outstanding debt. This will make it a AAA rated form. In Pakistan AA rated debt in yadding 11% in the market. 2. los1 lille inne debt and buy back stock. This will do its rating to A In Pakistan A-rated debt is acking 13 in the market. 3. Ieue Re 3 bilice in new debt and bay back track This will drop its rating to CCC In Pakistan CCCrated debt in ywking is in the marketplace Luckily or unlucka, CEO of Send Aldaris friend of your father and has come to your house for a dent. Your father is very pad of you and asks the CEO to test your kerleden finance, Ege of CEO Sind Abadigar light up instantly. He also the Gollowing questionight way. Make your father pead and show complete working

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

Step: 3

blur-text-image

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

Understanding financial statements

Authors: Lyn M. Fraser, Aileen Ormiston

9th Edition

136086241, 978-0136086246

More Books

Students also viewed these Finance questions