I want this sum answer

568 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

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
22 June 2026
Accountant

Global Image Technologies Private Limited

New Delhi

MBA

View Details
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
24 June 2026
HEAD - AUDIT AND TAXATION

A R JADHAV AND ASSOCIATES

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 24 June 2026
ARTICLE ASSISTANT

BHUPINDER SHAH AND COMPANY

New Delhi

CA Inter

View Details
Company
22 June 2026
Finance Manager- Chartered Accountant

Triveni Turbine Limited

Bengaluru

CA

View Details
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details