Question

x company ltd is considering three different plans rs. 100 lakhs. to finance its total project cost of they are - 50 lakhs equity (rs.100 per share) debt (8% debentures) equity (rs. 100 per share) debt (8% debentures) equity (rs. 100 per share) debt (8% debentures) sales for the first three years of operations an estimated at rs.100 lakhs, rs.125 lakhs and rs. 150 lakhs and a 10% profit before interest and taxes is forecasted to be achieved. corporate taxation to be taken at 50%. compare earnings per share in each of the alternative plans of financing for the three years. i)plan a : plan b: -) plan c: - 50 lakhs - 34 lakhs - 66 lakhs - 25 lakhs - 75 lakhs

Answer 1

Answer:In short, if a company having 50% tax bracket pays debenture interest @ 10% the ultimate ... So it can safely be stated that to raise fund by the issue of debt capital or ... X Ltd. has equity share capital of Rs. 5,00,000 (face value Rs. 100 each). ... X Company Ltd. is considering 3 different plans to finance its total project cost of ...

Explanation:

Answer 2

And the answer is...

In 1st year - 0

In 2nd year- 00

In 3rd year- 000