14 July 2010
Minimum Acceptable Rate of Return The following information is available
Equity Share Capital 800000 (Before Tax cost %) 14 Prefereance Share Capital 100000 (Before Tax cost %) 6 Long Term Debit 600000 (Before Tax cost %) 8
The compnay is to undertake a expansion project cost rs. 500000 which can be arranged at 9%What is minimum acceptable rate of Return? Assumed 40% is tax rate for the company
Can any one provide solution please???
Querist :
Anonymous
Querist :
Anonymous
(Querist)
14 July 2010
Minimum Acceptable Rate of Return The following information is available
Equity Share Capital 800000 (Before Tax cost %) 14 Prefereance Share Capital 100000 (Before Tax cost %) 6 Long Term Debit 600000 (Before Tax cost %) 8
The compnay is to undertake a expansion project cost rs. 500000 which can be arranged at 9%What is minimum acceptable rate of Return? Assumed 40% is tax rate for the company