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  • Equity Share of 100 Each

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    Krushikesh Patil
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    The document presents financial information for a company that wants to raise Rs. 25,00,000 and is considering different capital raising alternatives involving the issue of equity shares, preference shares, and debentures. It provides details of the company's existing capital structure and calculations of earnings per share under each alternative, with the optimal alternative having the highest EPS of Rs. 145.8.

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    Equity share of 100 each

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    The document presents financial information for a company that wants to raise Rs. 25,00,000 and is considering different capital raising alternatives involving the issue of equity shares, preference shares, and debentures. It provides details of the company's existing capital structure and calculations of earnings per share under each alternative, with the optimal alternative having the highest EPS of Rs. 145.8.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    4 views2 pages

    Equity Share of 100 Each

    Uploaded by

    Krushikesh Patil
    The document presents financial information for a company that wants to raise Rs. 25,00,000 and is considering different capital raising alternatives involving the issue of equity shares, preference shares, and debentures. It provides details of the company's existing capital structure and calculations of earnings per share under each alternative, with the optimal alternative having the highest EPS of Rs. 145.8.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 2

    Equity share of 100 each 40,00,000

    Retained earning 10,00,000


    9% preference share 25,00,000
    7% debentures 25,00,000

    interest@12% &Tax @50%

    company want to raise 25,00,000

    issue of 20000 equity shares at a premium Rs of 25 per shares

    issue of 10% preference shares

    issue of 9% debentures

    earning ratio is case of this alternative are

    (a) 20

    (b) 17

    (c) 16
    particulars 1 A B C
    Equity share 4000000 4000000 4000000 4000000
    Retain 1000000 1000000 1000000 1000000
    9% ps 25,00,000 25,00,000 25,00,000 25,00,000
    7% debentures 2500000 2500000 2500000 2500000
    20000*100 2000000
    preliums 500000

    10% p shares 2500000

    9% debentures 2500000

    Total 10000000 12500000 12500000 12500000

    EBIT 12% 1200000 1500000 1500000 1500000


    Interest – 7% 175000 175000 175000 175000
    9% 225000

    EATBT 1025000 1325000 1325000 1100000


    TAX 50% 512500 662500 662500 550000
    512500 662500 662500 550000

    Divident To pss 225000 225000 225000 225000


    9%
    250000
    ToTal 287500 437500 187500 325000

    Equity Shares 40000 60000 40000 40000


    Member 100%
    7.19 7.29 4.69 8.13
    20 17 16
    145.8 79.73 130.08

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