A company has: EBIT = Rs 4,00,000; Tax rate = 30%; Dividend pay-out ratio = 40%; No. of outstanding shares = 1,00,000; Equity capitalisation rate = 15%; and ROI = 12%. Find the MPS based on Gordon’s...

A company has: EBIT = Rs 4,00,000; Tax rate = 30%; Dividend pay-out ratio = 40%; No. of outstanding shares = 1,00,000; Equity capitalisation rate = 15%; and ROI = 12%. Find the MPS based on Gordon’s Theory of Dividend.

Find out the amount of debt—both short-term and long-term, if assets amount to Rs 4,58,000 and the owners’ equity amounts to Rs 2,60,000.