On the basis of the following information, what will be the EBIT corresponding to financial indifference point ?
Total capital outlay Rs 60,00,000
Financing Plans
(a) 100% Equity @ Rs 10/- per share
(b) Debt - equity ratio 2 : 1
Rate of interest 18% p.a., corporate tax rate 40%
| A. | Rs 10,00,000 |
| B. | Rs 12,00,000 |
| C. | Rs 10,80,000 |
| D. | Rs 12,80,000 |
Answer : C Explanation : |
|
|
Option: A Explanation : Explanation will come here. Explanation will come here. Explanation will come here. Explanation will come here. Explanation will come here. |
