PS limited has equity share capital …

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PS limited has equity share capital of rupees 1000000 last year the company declared a return of 5% to the shareholders it needs more fund for its expansion this year .the stock market is going through a bearish phase .the company contemplating to borrow 5 lakh from the financial institutions @10 percentage per annum explain whether the decision will benefit the shareholders or not if
1 the profit before interest and tax is rupees 135000 for the year
2 the profit before interest and tax is rupees 180000 for the year
Posted by Nishad Sharma 6 years, 1 month ago
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