Rishabh Ltd. earns a profit after tax ₹3,96,000. Corporate tax is 0.4. Its capital structure consists of equity shares ₹9,60,000; 15% Term Loan ₹4,80,000; Cost of equity is 0.12. Its economic value added is ............

CS Executive · Corporate and Management Accounting · PYQS · June 2021
Rishabh Ltd. earns a profit after tax ₹3,96,000. Corporate tax is 0.4. Its capital structure consists of equity shares ₹9,60,000; 15% Term Loan ₹4,80,000; Cost of equity is 0.12. Its economic value added is ............
(A) ₹2,66,400
(B) ₹2,80,800
(C) ₹2,08,800
(D) ₹2,80,008

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Management Accounting

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