The capital structure of a company includes 2,00,000 equity shares of face value of 10 each, 15,000

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The capital structure of a company includes 2,00,000 equity shares of face value of ₹10 each, 15,000 9% preference shares of face value ₹100 each and 10,000 10% debentures of face value ₹100 each. The net income of the company for the year ended March 31, 2010 was ₹12,50,000. The capitalization rate assigned by the equity investors for this type of company is 20%, whereas preference shareholders expect 12% return and debenture holders expect 10% returns. Calculate the value of the firm.

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Financial Accounting

ISBN: 9780071078023

1st Edition

Authors: Dhanesh K. Khatri

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