Question

4. A Ltd. is considering a capital structure of rs 10 lakhs for which following options are
available. Calculate the indifference level of EBIT between the following alternatives:
1. Equity 8 lakhs and 13% Preference Share Capital 2 lakhs or Equity 4 lakhs, 13%
Preference Share Capital 2 lakhs and 15% Debentures 4 lakhs.​

Answer 1

Explanation:

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