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The following data pertain to Forge Limited: Exsting capital structure: 10 lakh Equity Shares of 10 each Tax Rate : 50 per cent Forge Limited

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The following data pertain to Forge Limited: Exsting capital structure: 10 lakh Equity Shares of 10 each Tax Rate : 50 per cent Forge Limited plans to raise additional capital of 100 lakhs for financing an expansion project. It is evaluating two alternative financing plans: (i) Issue of 10,00,000 equity shares of 10 each and (ii) Issue of 100 lakh debentures carrying 14 per cent interest. You are required to compute indifference point

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