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Hi , I have aound 4 years of experience in C#.net with WPF . I want to upgrade my skills, so looking for add some new skills which will be good for learn to upgrade my carrier

Asked by Raveendra 11/07/2019 Last Modified 10 Oct

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A company has a loan of Rs.15,00,000 as part of its capital employed. The interest payable on Loan is 15% and the ROI of the company is 25%. The rate of income tax is 60%. What is the gain to shareholders due to the loan raised by the company?

ROI = EBIT/ Capital EmployedEBIT = ROI × Capital Employed = 25% × 20,00,000 = 5,00,000 Intrest = 20,00,000 × 15% = 3,00,000 Shareholders Gain = EAT ( Earning After Tax) = (EBIT - Intrest)...

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