Calculate the market price of share corporate tax rate, Finance Basics

The Balance Sheet of International Trade Ltd. as on 31/3/2008 is as under:-                                 

Liabilities

Amount

Assets

Amount

Equity capital (Rs. 10 Each)

90

Building

150

10% Long term debt

120

Machinery

75

Retained Earnings

30

Stock

50

Current Liabilities

60

Debtors

20

 

 

Cash

5

Total

300

Total

300

The total assets turnover ratio of the company is 3, its fixed operating cost is 1/6 of sales and variable operating cost is 50% of sales. The corporate tax rate is 35%.

You are require to:

(i)    Calculate the operating, financial and combined leverage.

(ii)   Calculate the market price of the share if the P/E multiple is 2.5

(iii)  Calculate the level of EBIT if the EPS is (a) Rs.15 (b) Rs.25.

 

Posted Date: 3/15/2013 2:26:49 AM | Location : United States







Related Discussions:- Calculate the market price of share corporate tax rate, Assignment Help, Ask Question on Calculate the market price of share corporate tax rate, Get Answer, Expert's Help, Calculate the market price of share corporate tax rate Discussions

Write discussion on Calculate the market price of share corporate tax rate
Your posts are moderated
Related Questions
finance is divided into _____ and___________

Cum. And Ex. - Terms Used in Capital Market Authority           These prefixes are written in front of other words as like capital, rights and dividends to qualify them."Cum" i

how ca i calculate the common stock dividends in the income statement if it is not mentioned

Define two instances of Efficiency Ratio, Liquidity Ratio, Leverage Ratio? 1. Define two instances each of 'Efficiency Ratio', 'Liquidity Ratio', 'Leverage Ratio' and 'Prof

Collection Policy The firm's collection policy may affect also our study.  The higher the cost of collecting accounts obtainable the lower the bad debt losses.  Therefore the

Your client, a man, is currently 35 years old and he wants to retire when he is 65 years old (exactly 30 years from now). He would like his retirement income to be equivalent to

Maghrabi Enclosure follows a moderate current asset investment policy, but it is considering whether to shift to a different strategy. The firm''s annual sales are $500,000; its f

Five years ago, you bought a house for $151,000, with a down payment of $30,000, which meant you took out a loan for $121,000. Your interest rate was 5.75% fixed. You would like to

A. Michael Spence An American economist who was awarded by the Nobel Memorial Prize in Economic Sciences. Spence is a lecturer of management at Stanford University in the Gradu

Monitoring Costs - Agency Costs This is incurred to prevent undesirable managerial actions. They are meant to ensure that both parties live to the spirit of agency contract. T