alleryStart learning →Post buy-back equity is Rs 35 lakh. The largest debt allowed under the debt-equity limit is
ARs 70 lakh
BRs 17.5 lakh
CRs 35 lakh
DRs 52.5 lakh
Answer & Solution
Correct answer: A. Rs 70 lakh
With a 2:1 ceiling, debt can be at most twice the equity, which is Rs 70 lakh.
Keep practising Buy-Back of Securities
Browse all Buy-Back of Securities questions for CA Inter, or explore more Accounting topics.
Related questions
Under Section 68, specified securities includeAfter a buy-back, a remaining investor's proportionate ownershipThe details of the transfer to capital redemption reserve are to be disclosed in the40,000 shares of face value Rs 5 are bought back at Rs 9. Equity share capital is debited Which can absorb the premium paid on a buy-back?Shares that a company has bought back areWithin six months after a buy-back, a company may still make aThe register of bought back shares is kept at the company's