Forums
Back
Capital Structure
Financial Management
In this question how did they got the answer as rs.876 it should be 2,08,571 (17,08,571-15,00,000)
Answers (6)
Thread Starter
Harsh MittalIt's in the extra question section
It is not Rs.876 which is a mistake on part of ICAI it should be Rs.876000. they have clearly provided the explanation in the working note. How did you get 1708571
Thread Starter
Harsh MittalSir how did you got 876000
2376000 -1500000 How did i get 2376000? (EBIT - 840000)/800000 = EBIT - 360000 / 1050000 840000 = alternative 1 3.6 lacs + 4.8 lacs 8 lacs is equity shares in alternative 1 3.6 lacs is cost of debt in alternative 3 10.5 lacs is total share capital under alternative I specifically asked you to refer to working note in the ICAI pls go through page 5.55 - https://resource.cdn.icai.org/66671bos53808-cp5.pdf
Your Reply