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The financial manager of a company has formulated various financial plans to finance Rs . 3 0 , 0 0 , 0 0 0 required

The financial manager of a company has formulated various financial plans to
finance Rs.30,00,000 required to implement various capital budgeting projects. You are required to determine the indifference point for each financial plan, assuming 55% corporate tax rate and the face value of equity shares as Rs.100; (i) Either equity capital of Rs.30,00,000 or Rs.15,00,00010% debentures and Rs.15,00,000 equity; (ii) Either equity capital of Rs.30,00,000 or 12% preference shares of Rs.10,00,000 and Rs.20,00,000 equity; (iii) Either equity capital of Rs.30,00,000 or 12% preference capital of Rs.10,00,000, Rs.10,00,00010% debentures and Rs.10,00,000 equity; and (iv) Either equity share capital of Rs.20,00,000 and 10% debentures of Rs.10,00,000 or 12% preference capital of Rs.10,00,000,10% debenture of Rs.8,00,000 and Rs.12,00,000 equity.

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