CA Sansaar

Q. > Please Help: question
user

376 views • Question added Apr 25, 2013 • Accounts • By Rinku Gupta , CA , Patiala


Q3.(i) The capital employed in a business has been finance as below:
Rs.
Equity Share Capital 6,00,000
7% Preference Share Capital 4,00,000
6% Debentures 8,00,000
Reserves & Surplus 2,00,000
The company earns a profit of Rs. 4,00,000 before interest and tax .Test it for Trading on Equity. Tax rate may be taken at 50%.
(ii) Explain the factor influencing capital structure.

1 Answers

answered May 09, 2013 by Vikash Kumar Jha , Cuttack

To know the test as trading on equity share for which we have to come profit after intest than deduct tax after this ingnore preference devidend out of this and on balance profit we have to calculate ratio of it whit total amount of share capital. Last one ihave to say factor which affect capital structure are debt and equity in the sense of cost, risk, dilution in control.


subscribe
Ask a question:
Experts Panelist
Profile Image
Rambabu Senkarasetti
Accounts, Audit, Corporate Law, Finance, Income Tax, Service Tax, Students, VAT
Answers Posted : 409
Profile Image
CA Satuti Mahajan
Accounts, Audit, Corporate Law, Custom, Excise, FEMA, Finance, GST, IFRS, Income Tax, Service Tax, Shares & Stock, Students, VAT
Answers Posted : 291
Profile Image
Vikash Kumar Jha
Accounts, Audit, Banking, Corporate Law, Custom, Excise, FEMA, Finance, GST, IFRS, Income Tax, Service Tax, Shares & Stock, Students, VAT
Answers Posted : 270
Profile Image
Rishabh Upadhyay
Accounts, Audit, Corporate Law, Custom, Excise, FEMA, Finance, IFRS, Income Tax, Service Tax, Shares & Stock, Students, VAT
Answers Posted : 257
Profile Image
Ashish Karundia
Accounts, Audit, Corporate Law, Custom, Excise, FEMA, Finance, Income Tax, Service Tax, Students, VAT
Answers Posted : 257
Profile Image
Mrattunjay
Accounts, Corporate Law, Custom, Excise, FEMA, Finance, GST, IFRS, Income Tax, Service Tax, Shares & Stock, Students, VAT
Answers Posted : 220
Profile Image
PRIYANKA
Accounts, Audit, Corporate Law, Excise, Finance, Income Tax, Service Tax, Shares & Stock, Students, VAT
Answers Posted : 136
Profile Image
CA. SURESH Kr. AGARWAL
Accounts, Audit, Corporate Law, Custom, Excise, FEMA, Finance, GST, IFRS, Income Tax, Service Tax, Shares & Stock, Students, VAT
Answers Posted : 131
Profile Image
Vaneet Gupta
Accounts, Audit, Corporate Law, Custom, Excise, FEMA, Finance, IFRS, Income Tax, Service Tax, Shares & Stock, Students, VAT
Answers Posted : 120
Profile Image
Ketan Samdani
Accounts, Audit, Corporate Law, Excise, Finance, GST, Income Tax, Service Tax, Students, VAT
Answers Posted : 117
View more
4856
QUESTIONS
4692
ANSWERS
807
EXPERTS
2701
QUERIST
Home Jobs Empanelment Queries Profile