Accountancy, asked by jainsourabh7200, 4 months ago

А
A company has a loan of Rs 20,0000
as part of its capital employed
The Interest payable on loan is 15%
and the ROI of the company is 25% the re of income tax is 40% what is the gain to the shareholders due to the loan raised by the company​

Answers

Answered by p981309
1

Answer:

The share holders get the benefit of interest amount rs 30000 as savings in tax.

Answered by mohdsohailraeen
0

Answer:

ROI = EBIT/ Capital Employed

EBIT = ROI × Capital Employed

= 25% × 20,00,000

= 5,00,000

Intrest = 20,00,000 × 15%

= 3,00,000

Shareholders Gain = EAT ( Earning After Tax)

EAT = (EBIT - Intrest) - Income Tax

= (5,00,000 - 3,00,000) - 40%

= 2,00,000 - 40%

= 2,00,000 - 80,000

= 1,20,000

Hence, the gain the shareholders due to the loan raised by the company is RS. 1,20,000.

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