A firm has equity and debt in its capital structure amounting respectively to Rs 2,00,000 divided in 20,000 shares of Rs 10 each and Rs 3,00,000. The market price of a share is Rs 50. The operating...


A firm has equity and debt in its capital structure amounting respectively to Rs 2,00,000 divided in 20,000 shares of Rs 10 each and Rs 3,00,000. The market price of a share is Rs 50. The operating profit is Rs 2,40,000. The interest payment on debt amounts to Rs 30,000. The tax rate is 30%. Find (a) earning per share, (b) P/E ratio, and (c) capitalisation rate.



May 04, 2022
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