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Posted by Irfan Khan 6 years, 11 months ago
- 4 answers
Irfan Khan 6 years, 11 months ago
Kay.ltd is a company manufacturing textiles.It has a share capital of rupees the previous year in 60 lakhs its share per share of rupees 0.50 .for diversification of company needs an additional capital of rupees 40 lakhs.The company raises funds by issuing 10% debentures for the same year during the company and a profit of 8lakh on the capital employed .it paid tax @ 40%
A)state whether the shareholders gain or loss in respect of earnings per share on diversification show your calculation clearly
B)also state any three factors the favour of issue of debenture by the company as part of its capital structure
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Nav Dhillon 6 years, 11 months ago
1Thank You