IndigoLearn

Forums

Financing decisions

In free courses, 2nd video ofcapital structure , financing decisions question. How it is justifiable for giving the same EPS for both existing n for new shareholders.old shareholders give only 10/-.where as new shareholders are contributing 10/-facevalue & 40/- premium togetherly 50/-.but old are also taking same EPS as new people takes


Divya tejasri

Divya tejasri

CA Inter

8K+

20-Feb-20 14:27

66

Answers (2)

EPS is always computed based on the number of shares irrespective of the price paid for the purchase. Also, dividend is paid on face value irrespective of the issue price.


Suraj Lakhotia

Suraj Lakhotia

Admin

20-Feb-20 14:30

Tq sir


Divya tejasri

Divya tejasri

CA Inter

8K+

20-Feb-20 19:33

Individual Modules are back
CA Foundation Scholarship
IL Pass percentages
SFM Launch
Tally Free
Quote
Refer
EMI
Lazypay
Past_Exams
Economics for Finance Launch