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With the help of following information of SBI Ltd. Compute Economic Value Added Capital Structure   Equity Share Capital     Rs 160 Lakhs Reserves       Rs 140 Lakhs 10% Debentures Rs 400 Lakhs Cost of Equity 14 % Financial Leverage 1.5 Times Income Tax Rate 30 %

With the help of following information of SBI Ltd. Compute Economic Value Added Capital Structure   Equity Share Capital     Rs 160 Lakhs Reserves       Rs 140 Lakhs 10% Debentures Rs 400 Lakhs Cost of Equity 14 % Financial Leverage 1.5 Times Income Tax Rate 30 %

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
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With the help of following information of SBI Ltd.

Compute Economic Value Added

Capital Structure

 

Equity Share Capital    

Rs 160 Lakhs

Reserves      

Rs 140 Lakhs

10% Debentures

Rs 400 Lakhs

Cost of Equity

14 %

Financial Leverage

1.5 Times

Income Tax Rate

30 %

 

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