Description
a simple case study
Assignment No. 3
Amit Corporation Ltd. is proposed to be capitalized at Rs. 20 lacs by anyone of the following capital structures.
Particulars Equity Capital 8% Preference Shares 9% Debentures
Structure I 500000 900000 600000
Structure II 800000 500000 700000
Structure III 600000 1000000 4000000
Structure IV 1400000 600000
Profit before debenture interest and Tax @ 50% of net profit are expected to be 18% of the capitalization with a possible variation of + / - 3%.. You are required to evaluate these structures showing the necessary computations under the variation in profit.
doc_222397192.docx
a simple case study
Assignment No. 3
Amit Corporation Ltd. is proposed to be capitalized at Rs. 20 lacs by anyone of the following capital structures.
Particulars Equity Capital 8% Preference Shares 9% Debentures
Structure I 500000 900000 600000
Structure II 800000 500000 700000
Structure III 600000 1000000 4000000
Structure IV 1400000 600000
Profit before debenture interest and Tax @ 50% of net profit are expected to be 18% of the capitalization with a possible variation of + / - 3%.. You are required to evaluate these structures showing the necessary computations under the variation in profit.
doc_222397192.docx