Question: I need handwritten solution on ABC Ltd. Has the following capital structure: | HRS. Lakhs)| |Ordinary shares 101akhNos.@of 113.10 eachl 100 | | Reserves and

I need handwritten solution on ABC Ltd. Has the following capital

I need handwritten solution

on ABC Ltd. Has the following capital structure: | HRS. Lakhs)| |Ordinary shares 101akhNos.@of 113.10 eachl 100 | | Reserves and surpluses I 40 | l 10% Debentures each of face value Rs. 100 I 60 l 200 The company needs Rs. 50 lakhs to execute a new project which will raise its operating prot from the current level of P640 lakhs to R355 lakhs. It is considering the following options: a. Issue equity shares at a premium of RsJS each for the entire amount. b. Issue of 12% debentures for the entire required funds. c. Issue equity hares for Rs. 25 lakhs at at premium of R320 per share and issue 12% debentures for the balance amount. Required: Company's tax rate is 40%. You are required to evaluate each proposal and recommend the best alternative

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