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P 10.8 KPMG Ltd., has currently an ordinary share capital of Rs. 25 lakhs, consisting of 25,000 shares of Rs. 100 each. The management is planning to raise another Rs. 20 lakhs to finance a major programme of expansion through one of four possible financial plans. D Entirely through ordinary shares ID Rs. 10 lakhs through ordinary shares and Rs. 10 lakhs through long-term borrowings at 8 cent interest. per II) Rs.5 lakhs through ordinary shares and Rs. 15 lakhs through long-term borrowing at 9 per cent interest. IV) Rs 10 laikhs through ordinary shares and Rs. 10 lakhs through preference shares with 5 per cent dividend. The company's expected EBIT will be Rs. 8 lakhs. Assuming a corporate tax rate of 46 per Determine the EPS in cach alternative and comment which altermative is best and why

P 10.8 KPMG Ltd., has currently an ordinary share capital of Rs. 25 lakhs, consisting of 25,000 shares of Rs. 100 each. The management is planning to raise another Rs. 20 lakhs to finance a major programme of expansion through one of four possible financial plans. D Entirely through ordinary shares ID Rs. 10 lakhs through ordinary shares and Rs. 10 lakhs through long-term borrowings at 8 cent interest. per II) Rs.5 lakhs through ordinary shares and Rs. 15 lakhs through long-term borrowing at 9 per cent interest. IV) Rs 10 laikhs through ordinary shares and Rs. 10 lakhs through preference shares with 5 per cent dividend. The company's expected EBIT will be Rs. 8 lakhs. Assuming a corporate tax rate of 46 per Determine the EPS in cach alternative and comment which altermative is best and why

Essentials Of Investments
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
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PSPCB-HIMX cial management 9 AM P 10.8 KPMG Ltd.. has currently an ordinary share capital of Rs. 25 lakhs, consisting of 25,000 shares of Rs. 100 cach. The management is planning to raise another Rs. 20 lakhs to finance a manor prograTVIne of expansion through one of four possible financial plans. D Entrely through ordinary shares YRs 10 lakhs through ordinary shares and Rs. 10 lakhs through long-term borrowings at 8 per cent interest. RS lakbtrough ordinary shares and Rs. 15 lakhs through long-term borrowing at 9 per cen intere. IV)R 10 1 s through ordinary shares and Rs. 10 lakhs through preference shares with 5 per ce dividend. The compaoy's expected EBIT will be Rs. 8 lakhs. Assuming a corporate tax rate of 46 per cach alternative and comment which alternative is best and why.? IBBM. BU, Nor. 1996 cent Determise the EPS in
Transcribed Image Text:PSPCB-HIMX cial management 9 AM P 10.8 KPMG Ltd.. has currently an ordinary share capital of Rs. 25 lakhs, consisting of 25,000 shares of Rs. 100 cach. The management is planning to raise another Rs. 20 lakhs to finance a manor prograTVIne of expansion through one of four possible financial plans. D Entrely through ordinary shares YRs 10 lakhs through ordinary shares and Rs. 10 lakhs through long-term borrowings at 8 per cent interest. RS lakbtrough ordinary shares and Rs. 15 lakhs through long-term borrowing at 9 per cen intere. IV)R 10 1 s through ordinary shares and Rs. 10 lakhs through preference shares with 5 per ce dividend. The compaoy's expected EBIT will be Rs. 8 lakhs. Assuming a corporate tax rate of 46 per cach alternative and comment which alternative is best and why.? IBBM. BU, Nor. 1996 cent Determise the EPS in
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