A company needs 3125000 INR for construction of new plant. The following are 2 feasible options: -a) company may issue 312500 equity share at 10 each b) company may issue 156250 ordinary equity shares at 10 each and debenture of 15625 at 100 each bearing 8% intrest . Corporate Tax is 40% , calculate indifference point
April 09, 2020
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Skyline software limited wants to implement a project for which 30 lakh is required. Following financing optionsOption one equity share 30000, option 2 equity share 10000, 12% preference share -10000, 10% debenture 10000. calculate the indifference point , EPS at all level and EBIT assuming corporate tax 35 %
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