ABC Limited has an average selling price at 10 per unit. the variable unit cost are 7 and fixed cost amount to 170000, it finances all asset and equity fund. and pay 30% tax. PQR is similar firm but instead of financing its assets are 50 % by equity and 50% by debt, where intrest cost is 20000. which of the following statement is correct
April 08, 2020
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Bling Limited supplies following data: operatig leverage 2.5, financial leverage3, EPS 30, MArket price per share 225, and capital 20K shaes. it proposed to raise loan of 50lakh @18% for expansion. after expansion sales are expected to increase by 25% and fixed cost by 300000. what will be market price per share, assuming tax rate 50%
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