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
Cash and Marketable Securities Management The management of marketable and cash securities is single of the key areas of working capital management. Because cash and marketabl

Functions of the Stock Exchange The essential function of a stock exchange is the raising of funds for investment in long-term assets. Whereas this basic function is very sign

Problem 1 a) Explain Trade Liberalisation and give your views whether emerging economies should adopt trade liberalization protectionist measures to attain economic growth.

Selection of Remuneration Policy The alternative of a suitable remuneration policy through a company will depend, with another thing, on: 1. Cost: the extent to that the p

Hull-White model As an extension of the Vasicek model, Hull-White model (1990) assumed that the short interest rate process follows the mean-reverting stochastic differential e

On 1 January 2008, a young artist called Michelangelo signed a contract with a charity named Art Angels, which supports young artists to do large projects. The agreement requires M

The operating and cost data of ABC Ltd. are: Sales Rs. 20,00,000 Vari

Commercial Banks - Banking Institutions These are financial institutions such accept deposits of money from the universal public, safeguard the deposits and create them availa


what are financial markets. why do they exist