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Asked by Nazia Last Modified
Answer ROI = EBIT/ Capital Employed
EBIT = 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) - Income Tax
= (5,00,000 - 3,00,000) - 60%
= 2,00,000 - 60%
= 2,00,000 - 120,000
= 80,000
Hence, the gain the shareholders due to the loan raised by the company is RS. 80,000.
Hemant Madhukar Shevde
ROI = EBIT/ Capital Employed
EBIT = 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) - Income Tax
= (5,00,000 - 3,00,000) - 40%
= 2,00,000 - 40%
= 2,00,000 - 80,000
= 1,20,000
Hence, the gain the shareholders due to the loan raised by the company is RS. 1,20,000.
ROI = EBIT/ Capital Employed
EBIT = 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) - Income Tax
= (5,00,000 - 3,00,000) - 40%
= 2,00,000 - 60%
= 2,00,000 - 120,000
= 80,000
Hence, the gain the shareholders due to the loan raised by the company is RS. 80,000.
read less Ramesh Kumar
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