Home Forum Accounting - Auditing Month 3 2019 2019 (3) This
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Calulation required for problem mentioned below - Reg - Accounting - AuditingExtract It has to decided to raise ₹ 5,00,000 of additional capital funds and has identified two plans. The Information is as follows Present Capital Structure : 3,00,000 equity shares of ₹ 10 each , 10% Bonds of 20,00,000 Tax Rate : 50% Current EBIT : ₹ 17,00,000/- Current EPS : ₹ 2.50 Current Market Price : ₹ 25 Per Share Financial Plan I : 20,000 Equity shares @ ₹ 25 Per Share Financial Plan II : 12% Debentures of ₹ 5,00,000 Find out which plan is better. Please calculate and send me the solution on priority basis.
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