[surajsusheel]

Thanks John, also i had another doubt, not pertaining to this,
If we are an existing business and sell off a part of our business (for corporate reconstruction) and that part is sold at P/E x earnings, will that be added to find the equity value of the company? or will it be added only when there is a gain assuming what we are selling off is equal to the worth of what we are receiving? (also please explain the treatment if it was sold for cash and there was a gain and also when there is no gain)

[surajsusheel]

if the question didnt say that, we would add it right? to find the taxable profits

[surajsusheel]

so if they say how much the dividend capacity needs to increase by we gross up the amount using the tax on profits but if they ask how much of dividends need to be remitted we gross up the witholding tax?

[surajsusheel]

ohh sorry i got confused with another question where they wrote theyll lose coupon interest if investment reduces, my apologies.

[surajsusheel]

if we bring additional assets we are getting a return of 12% on them right? so if we sell the assets of 3790 arent we losing that 12% return

[surajsusheel]

thanks a ton

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