(a) What do you understand by capital structure of a corporation? Discuss the qualities that 05 a sound capital structure should posses. (b) Trading un equity is conditioned primarily by the stability and certainty of 04 eurnings" - Explain. (c) Two Companies are earning on similar business with the same amount of capital as 05 indicated below: A Ltd. B. Ltd. Tk. 50,00,000/= Tk. 20,00,000/-> Equity shares of Tk. 100/= Each 14% Debentures and Loan Tk. 30,00,000/- Show the earnings per shure of the two companies at (n) 20% and (b) 10% return on capital and comment on the financial leverage. Assume 50% income-tax.

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