Tarmarind Ltd. wants to implement a project for which ₹25 lakhs is required. Following financing options are at hand : Option 1: Equity Shares 25,000@ ₹100 Option 2: Equity Shares 10,000@ ₹100, 12% Preference Shares 5,00
CS Executive · Financial and Strategic Management · PYQS · December 2023
Tarmarind Ltd. wants to implement a project for which ₹25 lakhs is required. Following financing options are at hand : Option 1: Equity Shares 25,000@ ₹100 Option 2: Equity Shares 10,000@ ₹100, 12% Preference Shares 5,000@ ₹100, 10% Debentures 10,000@ ₹100 Calculate the indifference point & EPS at that level of EBIT assuming corporate tax to be 35%.
Answer & Explanation:
Correct Answer: Option (B)
Official answer key: (B).
Topics: Financial Management
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