The market price of the share of a company is Rs 100. The EPS is Rs 10. The net profit is Rs 50,000. Find the optimal capitalisation. To explain the impact of capital structure on the risk and return...

The market price of the share of a company is Rs 100. The EPS is Rs 10. The net profit is Rs 50,000. Find the optimal capitalisation.

To explain the impact of capital structure on the risk and return aspect of the shareholders based on the view that capital structure influences the value of a firm.