if both the tax rate & interest rate is 10%. then from
where the company raise fund from debt or equity.
and which one is more suitable.
Answer Posted / anuj
Debt ang equity to raised is Rs 500
let income is Rs 100 ( When debt is raised )
intrest(-) 50
so, Tax (-) 5
PAT = 45
When equity is raised
intrest(-)0
Tax 50
PAT = 50 so,answer is equity option is better
| Is This Answer Correct ? | 4 Yes | 10 No |
Post New Answer View All Answers
I have qualified in the Axis Bank aptitude.Now my interview is on Nov.So pls tell me what questions are asked in the interview and tell me the reference book for interview in Axis Bank.
what is bailout fund and what are the main drawbacks of bailout funds? what is the role of bailout fund in an economy and what are the impact of bailout fund on market , economy , the bailout provider and the bailout reciever?
How can investment in mutual fund be beneficial?
How will be you differentiate between a manager and a leader?
What is Repo Rate and Reverse Repo Rate? Can you tell the basic difference between the two?
What types of shares can a company issue to raise long term funds?
How Is The Capital Conservation Buffer Accounted For In The 2016 Srep?
What is Kisan Credit card?
What is MFN? What is Gold Standard?
What do you mean by assessment year?
What are the different types of markets that can co-exist?
How can we utilize your skills?
Describe the difference between being a manager and a leader and a follower?
Explain different trims?
Under Which Ordinance Company is Formed?