Beximco Pharmaceuticals Ltd. has 68,200 of common stock outstanding. Beximco employs tk. 55,80,000 of debt capital carrying 10% interest charge. The overall cost of the capital is 12.50%. Its net operating income (EBIT) is tk.15,50,000. Required: (using NOI approach) iv) Earnings per share v) Equity capitalization rate vi) DFL
Beximco Pharmaceuticals Ltd. has 68,200 of common stock outstanding. Beximco employs tk. 55,80,000 of debt capital carrying 10% interest charge. The overall cost of the capital is 12.50%. Its net operating income (EBIT) is tk.15,50,000. Required: (using NOI approach) iv) Earnings per share v) Equity capitalization rate vi) DFL
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Beximco Pharmaceuticals Ltd. has 68,200 of common stock outstanding. Beximco employs tk. 55,80,000 of debt capital carrying 10% interest charge. The overall cost of the capital is 12.50%. Its net operating income (EBIT) is tk.15,50,000. Required: (using NOI approach)
iv) Earnings per share
v) Equity capitalization rate vi) DFL
vii) Percentage of financial leverage viii) DPS
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