__________of a company refers to the amount invested in the company by the shareholders.

None of the above

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Corpus

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Capital fund

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Share capital

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Solution

The correct option is D
Share capital

Share capital of a company refers to the amount invested in the company

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Similar questions

Q. The of a company refers to the amount invested in the company by the shareholders.

Sakshi Ltd. is a company manufacturing electronic goods. It has a share capital of Rs. 120 lakhs. The earning per share in the previous years was Rs 0.5. For diversification, the company requires additional capital of Rs 80 lakhs. The company raised funds by issuing 10% debentures for the same. During the current year, the company earned a profit of Rs. 16 lakhs on capital employed. It paid a tax of 40 $%$ .

(a) State whether the shareholders gained or lost in respect of earning per share on diversification. Show your calculations clearly.

(b) Also, state any three factors that favour the issue of debentures by the company as part of its capital structure.

Q. 'Viyo Ltd.' is a company manufacturing textiles. It has a share capital of Rs

60

lakhs. The earning per share in the previous year was

R s . 0.50

. For diversification, She company requires additional capital of

R s . 40

lakhs. The company raised funds by issuing

10 %

debentures for the same. During the current year the company earned profit of Rs

8

lakhs on capital employed. It paid tax @

40 %

.
(a) Slate whether the shareholders gained or lost, in respect of earning per share on diversification. Show you calculations clearly.
(b) Also, state any three factors that favour the issue of debentures by the company as part of its capital structure.

Kay Ltd is a company manufacturing textiles. It has a share capital of Rs. 60 lakhs. In the previous year, the earning per share was Rs. 0.50. For diversification, the company requires additional capital of Rs. 40 lakhs. The company raised funds by issuing 10% debentures. During the year the company earned a profit of Rs. 8 lakhs on the capital employed. It paid tax @ 40%.

(i) State whether the shareholders gained or lost, concerning earning per share on diversification. Show your calculations clearly.

(ii) Also, state any three factors that favour the issue of debentures by the company as part of its capital structure.

Q. A company wants to set up a new branch in Delhi. For additional capital, the company is planning to issue equity shares to the public as there is boom period in capital market and the public will prefer to invest.
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__________of a company refers to the amount invested in the company by the shareholders.

The correct option is D Share capital Share capital of a company refers to the amount invested in the company

The correct option is D
Share capital

Share capital of a company refers to the amount invested in the company