Question

Sunita has a share capital of rs 100000 divide d into equity sgare of rs 10 each it has a major expansion programme requiring an investment of another rs 50000.The management is considering the three alternative for raising this ammount : issue of 5000 equity shares of rs 10 each,issue of 500 12%prwference shares of rs 100 each and issue of 10%debe nture of rs 50000.The company present earning before interest and tax is rs 30000.Assuming a tax rate 50 %,select the best alternative if after expansion ebit increase by rs 1000.

Answer 1

Functions Of Cash Management. Cash management is concerned with the management of cash inflows, outflows and cash flows within the firm. It also includes the matters relating to financing of deficit and investment of surplus cash so as to maintain optimum cash balance.