02-17-2011, 02:41 AM
Answer 1.
The current ratio would increase in such case.
Current ratio= current assets/current liabilities
Before payment
Current ratio =2
After payment
Current ratio =2.25
Answer No 2.
there would be an increase of Rs.15 per share.
Price per share =P/E multipler* EPS
In 2000
Price per share=9*3=27
In 2001
Price per share=3.5*12=42
Net increase= 42-27 =15
please write back if any queries
The current ratio would increase in such case.
Current ratio= current assets/current liabilities
Before payment
Current ratio =2
After payment
Current ratio =2.25
Answer No 2.
there would be an increase of Rs.15 per share.
Price per share =P/E multipler* EPS
In 2000
Price per share=9*3=27
In 2001
Price per share=3.5*12=42
Net increase= 42-27 =15
please write back if any queries
