The capital structure of a company is as follows,

12%preference shares of rs10 each 500,000

Equity shares of Rs10 each 800,000

Reserve and Surplus 400,000

10% Debentures 600,000

11%term loan 700,000

The average annual profit before tax and interest is Rs 600,000 and the tax rate is 45%.

You are required to state what valuation (value of share) should be put upon the equity shares of the company, if the applicable price earning ratio is 9.