Book 1

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equal(in Rs

all equity(in Rs lakhs)lakhs)


All debt (in Rs lakhs)
Funds required
10,000
10,000
10,000
Fresh equity
10,000
5,000
Nil
No. of fresh share(lakh)
105.26
52.63
Nil
Debt issued
5,000
10,000
Interest rate
10%
10%
10%
Add. Int. cost
Nil
500
1,000
EBIT
3,500
3,500
3,500
Interest
1,000
1,500
2,000
EBT
2,500
2,000
1,500
Taxes
900
720
540
EAT
1,600
1,280
960
No. of shares
205.26
152.63
100
EPS(Rs/share)
7.79
8.39
9.6
Ex. PE multiple
15
12
9
Ex. Price(Rs/share)
116.92
100.63
86.4
Value of equity
24,000
15,360
8,640
value of debt
10,000
15,000
20,000
value of firm
34,000
30,360
28,640

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