NG-CO DEC 09 PART D

This topic has 1 reply, 2 voices, and was last updated 11 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author

Posts
November 9, 2014 at 5:28 pm #208647
armaghanbutt
Member
- Topics: 27
- Replies: 39
sir ! my prob is they will be receiving or paying 20%? as it is return they should receive .. and 13m multiply20% =2600000, but in solution is 260000 ..they divided by 10 p/e ratio?
November 9, 2014 at 5:59 pm #208666
John Moffat
Keymaster
- Topics: 57
- Replies: 54856
Part (d) is looking at the interest to be paid.

The debt raised is 50% x 13M = 6.5M

The interest is 8%, which is 8% x 6.5M = 520,000 p.a..

It is payable half-yearly and so is 260,000 every 6 months.

(It has nothing to do with the PE ratio).
Author

Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.