A company needs rs 5000000 for the construction of a new plant
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A company needs rs 5000000 for the construction of a new plant

A company needs rs 5000000 for the construction of a new plant. The following three financial plans are feasible:

A). The company issue equity share of rs 100 each

B). The comapny may issue 25000 equity share of rs 100 rach and 25000 8% prefrential shares rs 100 each

C). Company may issue 25000 equity share of rs 100 and 25000 8% debentures of rs 100 eachIf the company's profit before interest and tax is 200000 suggest which option should be preferred tax rate is 50%


Hint
Accounts & FinanceAn equity share, normally known as ordinary share is a part ownership where each member is a fractional owner and initiates the maximum entrepreneurial liability related to a trading concern. These types of shareholders in any organization possess the right to vote.The biggest benefit of home equity sharing is that it's not a debt. There are no monthly payments, no interest, ...

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