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What is Redeemable debt
Company will have to re-pay the debt at redemption date or between the two redemption dates (i.e. 20X5/20X9, means debt can be redeemed any time between 20X5 and 20X9). If Company is having cash flow problems, then users of the accounts will need to know when debt will be repaid.
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Demerits of Pay Back Method:- (i) It ignores the Cash Flows after the Pay Back Period: - The main shortcoming of this method is that it completely ignores all cash inflows subs
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paid-up equty 100000 earning of the company 10000 praice - earning ratio(PIE) 20 no.of equty share
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