We are here with you hands in hands to facilitate your learning & don't appreciate the idea of copying or replicating solutions. Read More>>
+ Link For Assignments, GDBs & Online Quizzes Solution
+ Link For Past Papers, Solved MCQs, Short Notes & More
Dear Students! Share your Assignments / GDBs / Quizzes files as you receive in your LMS, So it can be discussed/solved timely. Add Discussion
How to Add New Discussion in Study Group ? Step By Step Guide Click Here.
XYZ Company is currently 100% Equity with 10,000 common stocks of Rs. 10 each. However,
company is considering to change its capital structure for next year by including debt financing
along with equity in its capital structure. For this, following debt financing plans are under
Plan 1 30% long term debt with interest rate of 10%
Plan 2 50% long term debt with interest rate of 15%
Marginal Tax rate is 20%, EBIT is Rs. 36,000 and preferred dividend is Rs. 5,000.
Requirement I: You are required to complete the given table for 100% equity, 30% debt and
50% debt by using the above information. Suggest which plan is better for the company and
100% equity 30% debt 50% debt
Common Stockholder’s equity (in Rs.)
Number of common Stocks
Earnings before taxes
Earnings after taxes
Earnings available to common stockholders
Earnings per share (EPS)
Calculate the value of common stock for 50% debt level if required rate of return on investment
in common stock equity is 12% and present value of growth opportunities is Rs. 40. Also
determine whether the stock is overvalued or undervalued if it is trading in the market at Rs. 65.
Any guidelines for solution please.........
.+ http://bit.ly/vucodes (Link for Assignments, GDBs & Online Quizzes Solution)
+ http://bit.ly/papersvu (Link for Past Papers, Solved MCQs, Short Notes & More)+ Click Here to Search (Looking For something at vustudents.ning.com?) + Click Here To Join (Our facebook study Group)
any idea this assignment
plz share ur ideas over here
ye lo solution raheela nadir
KIYA 36000 PY 30 OR 50 % Debt nhi lyn gye kindly bata do ap
plz upload solution file
solution share kr de help each other..thnx
Anyone Have sol
koi solution send kro ??
ye lo urooj assignment solution
Please Discuss here about this assignment.Thanks
Our main purpose here discussion not just Solution
We are here with you hands in hands to facilitate your learning and do not appreciate the idea of copying or replicating solutions. Read More>>
For Important Helping Material related to this subject (Solved MCQs, Short Notes, Solved past Papers, E-Books, FAQ,Short Questions Answers & more). You must view all the featured Discussion in this subject group.
For how you can view all the Featured discussions click on the Back to Subject Name Discussions link below the title of this Discussion & then under featured Discussion corner click on the view all link.
Or visit this link
Please Click on the below link to see…
Kindly friends, please share this assignment solution. It will be a noble help for the working people like me who has no time.