How to calculate Dominos net income?



0
Hi Sir

In the section-Analyzing Dominos Income Statement - Debt & Interest
I have doubt for the below question. I would like to know how did we arrive at 47 crore .

Assume that the net income of a company is Rs. 50 Crores. Now, if the company raise Rs. 20 crores in debt at 15% interest per annum, what will be the new net income?

1 Answer(s)


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Net Income of a company = Rs 50 Crores and Net new Income will be equal to Net Income minus Interest.
Interest = 15% of Rs 20 Crores i.e.3 Crores.
So New Net Income = Rs 50 Crores minus Rs 3 Crores i.e. Rs 47 crores.

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