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The present capital structure of Abdullah's Co.Itd. is: SOURCES OF FUNDS 3000, Equity shares of $100 each AMOUNTS $100.000 5000, 10% Debentures of $100 each

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The present capital structure of Abdullah's Co.Itd. is: SOURCES OF FUNDS 3000, Equity shares of $100 each AMOUNTS $100.000 5000, 10% Debentures of $100 each 55.00.000 $8,00.000 The present earning of the company before interest & taxes are 10% of the invested capital every year. The company is in need of $ 2,00,000 for purchasing a new equipment and it is estimated that additional investment will also produce 10% earning before interest & taxes every year The company has asked your advice as to whether the requisite amount be obtained in the form of 10% Debenture or equity shares of $100 each to be issued at par. Examine the Time left 1:05:21 its bearing and advice firm if the corporate tax rate is 50%. acer

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