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X Company Ltd is considering three differentplans to finance its total project cost of rs 100 lakhs They are(a)Plan A: Equity (Rs.100 per share) – 50 lakhsDebt (8% Debentures) – 50 lakhs(b)Plan B: Equity (Rs.100 per share) – 34 lakhsDebt (8% Debentures) – 66 lakhs(c) Plan C: Equity (Rs.100 per share) – 25 lakhsDebt (8% Debentures) – 75 lakhsSales for the first three years of operations an estimated at Rs.100 lakhs, Rs.125 lakhs and Rs.150 lakhs and a 10% profit before interest and taxes is forecasted to be achieved. Corporate taxation to be taken at 50%. Compare earnings per share in each of the alternative plans of financing for the three years. |
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Answer» f Explanation: n=2 is the SOLUTION for _________ m n=2 is the n=2 is n=2j is the solution for _________ solution for _________ for _________ |
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