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Question 59 Chapter 7 -Unimax Publication Class 12 Part 2 – 2021

Question No -59 Chapter no - 7 Unimax Class - 12 Part -II
Question No -59 Chapter no - 7 Unimax Class - 12 Part -II

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Question 59 Chapter 7 – Unimax Publication Class 12 Part 2 – 2021

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59. A company has a loan of 50,00,000 as a part of its capital employed. The interest payable on the loan is 10% and the return on investment is 15%. Assuming that the rate of income tax is 50%, calculate the amount of gain to the shareholders because of the loan obtained by the company.

The solution of Question 59 Chapter 7 – Unimax Publication Class 12 Part 2-2021 : –

Amount of loan = 50,00,000 
Return on investment = 15% of 5,00,0007,50,000
Less: interest paid on loan (10% of 50,00,000)5,00,000
 2,50,000
Less: rate of income tax (50% of 2,50,000)1,25,000
Amount of gain to the share holders₹1,25,000

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