Interest on borrowed funds

Assignment Help Accounting Basics

Reference no: EM131091401

Evan Soft Ltd. has assets of Rs. 2,80,000 which have been financed with Rs. 64,000 of debts and Rs. 1,10,000 of equity and a general reserve of Rs. 18,000. The firm's total profits after interest and taxes for the year ended 31st March 2015 were Rs. 25,700. It pays 13% interest on borrowed funds and is in the 60% tax bracket. it has 1,000 equity shares of Rs. 100 each selling at a market price of Rs. 125 per share. The firm pays 60% of its earning as dividend. The earning per share is Rs. ______________. Answer Choices 31.2 22.44 12.78 25.7 The cost of debt capital is ________________

Reference no: EM131091401

Questions Cloud

Compute the income elasticity : The maker of a leading brand of low-calorie microwavable food estimated the following demand equation for its product using data from 26 supermarkets around the country for the month of April: Calculate the price elasticity of demand. Compute the inc..

Which demand curve(s) indicates the firm incurs a loss : Which demand curve(s) indicates the firm incurs a loss?

Are people with mental illness dangerous to society : Can people with mental illness be helped? Are people with mental illness dangerous to society? Can people with mental illness "snap out" of it?

Determine the minimum cost way to blend the beef : He can buy pork containing 70% meat and 30% fat at $0.65 per pound. Bill wants to determine the minimum cost way to blend the beef and pork to make hamburgers that have no more than 25% fat.

Interest on borrowed funds : Evan Soft Ltd. has assets of Rs. 2,80,000 which have been financed with Rs. 64,000 of debts and Rs. 1,10,000 of equity and a general reserve of Rs. 18,000. The firm's total profits after interest and taxes for the year ended 31st March 2015 were R..

Established performance standards : It it HR professionals who ultimately determine pay based on performance relative to the established performance standards?

Results and analysis of a survey on plastic surgery : Write a summary of the article Results and Analysis of a Survey on Plastic Surgery Would you consider plastic surgery? Do you belive social media advertisements for plastic surgery influence people?

Critical analysis of a strategic plan : Review and analyze the Information Technology Strategic Plan, 2012 - 2016, of Arizona State University (available in the course folder and the University Technology Office (UTO) website). Review and analyze additional information at the UTO websi..

Determine the breakeven output : Assuming that sales of oil are normally distributed with a mean of 362,500 barrels and a standard deviation of 100,000 barrels, determine the probability that Offshore will incur an operating loss.

User Account

All Pages