Capital Structure of Emkay Company

The capital structure of a company refers to the way it finances its operations through a combination of debt and equity. In the case of Emkay Company, the capital structure is as follows:

1. Debentures (Market Value: R. 60,00,000):
Debentures are long-term debt instruments issued by a company to raise capital. These are typically secured by the assets of the company. In the case of Emkay Company, the market value of the debentures is R. 60,00,000. This means that investors have purchased these debentures from the company for a total amount of R. 60,00,000.

2. Preferred Stock (Market Value: R. 20,00,000):
Preferred stock represents ownership in a company and has a higher claim on the company's assets and earnings compared to common stock. It typically pays a fixed dividend and has a specified liquidation preference. In the case of Emkay Company, the market value of the preferred stock is R. 20,00,000. This indicates that investors have invested R. 20,00,000 in the preferred stock of the company.

3. Common Stock (Market Value: R. 80,00,000):
Common stock represents ownership in a company and gives shareholders the right to vote on certain matters and receive dividends. Unlike preferred stock, common stockholders have a residual claim on the company's assets and earnings after all other obligations have been met. Emkay Company has issued 3,20,000 shares of common stock, with a market value of R. 80,00,000. This means that the total value of the common stock is R. 80,00,000, and each share is valued at R. 250.

4. Total Capital Structure:
The total market value of Emkay Company's capital structure can be calculated by summing up the market values of the debentures, preferred stock, and common stock. In this case, the total market value is:

R. 60,00,000 (Debentures) + R. 20,00,000 (Preferred Stock) + R. 80,00,000 (Common Stock) = R. 1,60,00,000

Therefore, the total market value of Emkay Company's capital structure is R. 1,60,00,000.

Conclusion:
Emkay Company has a capital structure consisting of debentures, preferred stock, and common stock. The market value of the debentures is R. 60,00,000, the preferred stock is R. 20,00,000, and the common stock is R. 80,00,000. The total market value of the company's capital structure is R. 1,60,00,000.