Subject: Business / Finance
Question
Evan Soft Ltd. has assets of Rs. 2,80,000 which have been financed with Rs. 64,000 of debts and Rs. 1,10,000 of equity and a general reserve of Rs. 18,000. The firm's total profits after interest and taxes for the year ended 31st March 2015 were Rs. 25,700. It pays 13% interest on borrowed funds and is in the 60% tax bracket. it has 1,000 equity shares of Rs. 100 each selling at a market price of Rs. 125 per share. The firm pays 60% of its earning as dividend
The earning per share is Rs. ______________.
Answer Choices
31.2
22.44
12.78
25.7
The cost of debt capital is ________________.
Answer Choices
6.70%
5.20%
4.80%
5.50%
