The following is an extract from the financial statements of Zeta Limited: Amount ( lakhs) 105.0...
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The following is an extract from the financial statements of Zeta Limited: Amount ( lakhs) 105.0 33.0 72.0 Operating Profit Less: Interest on Debentures Earnings before Taxes Less: Income Tax (35%) Earnings after Taxes Equity Share Capital (shares of 10 each) Reserves and Surplus 15% Non-Convertible Debentures (of 100 each) 25.2 46.8 200.0 100.0 220.0 520.0 The market price per equity share is 12 and per debenture is 93.75. You are required to calculate: (a) The earnings per share. (b) The percentage cost of capital to the company for debentures and the equity. The following is an extract from the financial statements of Zeta Limited: Amount ( lakhs) 105.0 33.0 72.0 Operating Profit Less: Interest on Debentures Earnings before Taxes Less: Income Tax (35%) Earnings after Taxes Equity Share Capital (shares of 10 each) Reserves and Surplus 15% Non-Convertible Debentures (of 100 each) 25.2 46.8 200.0 100.0 220.0 520.0 The market price per equity share is 12 and per debenture is 93.75. You are required to calculate: (a) The earnings per share. (b) The percentage cost of capital to the company for debentures and the equity.
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a EPS EATNumber of shares Rs 468 lakhs 20 lakhs Rs 234 b Cost of Deben... View the full answer
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