The annual ebit of s ltd. Is rs 100 lakh. The company as 200lakhs of 15%debentures in its capital structure. The equity capitalization rate is 14%. The company desires to redeem the debentures bybissuing the additional equity shares. The additional shares can be issued in the market at a premimum of rs.10. According to the net income approach the total value of the firm is? A.rs 550 lakhs B.rs.680 lakhs C.rs.720 lakhs D.rs.700 lakhs
The annual ebit of s ltd. Is rs 100 lakh. The company as 200lakhs of 15%debentures in its capital structure. The equity capitalization rate is 14%. The company desires to redeem the debentures bybissuing the additional equity shares. The additional shares can be issued in the market at a premimum of rs.10. According to the net income approach the total value of the firm is? A.rs 550 lakhs B.rs.680 lakhs C.rs.720 lakhs D.rs.700 lakhs
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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The annual ebit of s ltd. Is rs 100 lakh. The company as 200lakhs of 15%debentures in its capital structure. The equity capitalization rate is 14%. The company desires to redeem the debentures bybissuing the additional equity shares. The additional shares can be issued in the market at a premimum of rs.10. According to the net income approach the total value of the firm is?
A.rs 550 lakhs
B.rs.680 lakhs
C.rs.720 lakhs
D.rs.700 lakhs
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