Ceyhan A. with a capital of 1,600,000 TL with a nominal value of TL 1 of the
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Question:
Ceyhan A. with a capital of 1,600,000 TL with a nominal value of TL 1 of the shares in circulation. It intends to finance a new investment project of TL 350,000, either by issuing bonds at a cost of 40% in their entirety, or by issuing new shares with a nominal value of TL 1 at breakeven. Assuming that the tax rate that the company concerned is subject to is 20 %;
A) determine the point of difference between project financing alternatives
b) find the profit per share at the point of difference and show the result on a chart.
Related Book For
Introduction to Governmental and Not for Profit Accounting
ISBN: 978-0132776011
7th edition
Authors: Martin Ives, Terry K. Patton, Suesan R. Patton
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