Beximco Pharmaceuticals Ltd. has 68,200 of common stock outstanding. Beximco employs tk. 55,80,000 of debt capital carrying 10% interest charge. The overall cost of the capital is 12.50%. Its net operating income (EBIT) is tk.15,50,000. Required: (using NOI approach) i) Total market value of the company. ii) Total market value of share capital. iii) Total market price per share.

Beximco Pharmaceuticals Ltd. has 68,200 of common stock outstanding. Beximco employs tk. 55,80,000 of debt capital carrying 10% interest charge. The overall cost of the capital is 12.50%. Its net operating income (EBIT) is tk.15,50,000. Required: (using NOI approach) i) Total market value of the company. ii) Total market value of share capital. iii) Total market price per share.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter13: Capital Structure Concepts

Section: Chapter Questions

Problem 7P

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