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Cost of retained earnings.

Financial Management

I have attached the question and my calculated answer as two separate images. Is that way correct? If so, Why isn't it calculated that way?

IMG_20210223_155130_695.jpg
IMG_20210223_155127_694.jpg

Raja Raman

Raja Raman

CA Inter

0

23-Feb-21 15:54

360

Answers (1)

30% tax is on income 3% brokerage is on the total fund. You combined which leads to an incorrect answer 10% x ( 1-0.3) this is correct - 7% is return on total capital 3% is also on total capital and not on the return So it should be 7% - 3% and not 7% X ( 1-3%)


Sriram Somayajula

Sriram Somayajula

Admin

25-Feb-21 08:25

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