Solution-Find out the expected efs under both financing

Find out the expected efs under both financing options

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Reference no: EM132561281

Question 1: A company requires capital funds of rs 5 crores and has two options (a) to raise the amount by the issue of 15% debentures and, (b) to issue equity shares at a rate of rs 20 per share. It already has 40lacs equity shares issued and debt financing of rs 6 crores at the rate of 12% find out the expected efs under both financing options at the given ebit levels of rs 2crores and rs 7.5 crores what should be choice of the company given that the applicable tax rate is 50%?

Reference no: EM132561281

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Find out the expected efs under both financing options

Reference no: EM132561281

Reference no: EM132561281

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