Q411
On the basis of the following information, what will be the EBIT corresponding to financial indifference point? Total capital outlay is Rs. 60,00,000 Financing Plans is 100% Equity is at Rs. 10/- per share Debt-equity ratio is 2 : 1 Rate of interest is 18% p.a. Corporate tax rate is 40%
A.
Rs. 10,00,000
B.
Rs. 12,00,000
C.
Rs. 10,80,000
AnswerD.
Rs. 12,80,000
Answer: Option C
Solution
Answer: Option C
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