I want this sum answer

Bcom 508 views 1 replies

Equity share of Rs. 100 each
Rs. 3, 20, 00,000 
7% preference shares of Rs. 100 each Rs. 2,00,00,000
6% debentures of Rs. 100 each 
Rs. 2, 00, 00,000
Reserves
Rs. 80, 00,000 
The rate of return on capital is 10%. The company needs Rs. 2,00,00,000 for expansion programme. 
The rate of corporation tax is 50%. There are three alternatives available to the company to finance its 
expansion.
(a) Issue of 160,000 equity shares of Rs. 100 each at a premium of Rs. 25 
(b) Issue of 8% preference shares 
(c) Issue of 7% debentures. Which alternative is best and why?

Replies (1)

https://docs.google.com/document/d/1FA9PSI6m-Uscga7GkxkGujkwuI70v7J1CAXFViqJx08/edit?usp=sharing


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 12 March 2026
Customer Relationship Executive

TAXLET

Calicut

B.Com

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details
Company
Featured 14 March 2026
Article Trainee

N N V Satish&co

Hyderabad

CA Inter

View Details