CS Professional · Strategic Management and Corporate Finance · Infrastructure Investment Trusts
An InvIT earns net distributable cash flow of Rs 90 crore in a year and has 30 crore units outstanding. A unit holder holds 20,000 units. If the entire cash flow is distributed, what is this holder's distribution for the year?
Distribution per unit is Rs 90 crore divided by 30 crore units, which is Rs 3. Multiplying by 20,000 units gives Rs 60,000. The listed option of Rs 6,00,000 misplaces a decimal, so the correct answer is Rs 60,000.
- ARs 6,00,000Correct
- BRs 60,000
- CRs 18,00,000
- DRs 3,00,000
Explanation
Distribution per unit = 90 crore / 30 crore = Rs 3. For 20,000 units, the amount is 20,000 x 3 = Rs 60,000. Rs 6,00,000 is wrong by a factor of 10 and Rs 18,00,000 is wrong by a factor of 30.
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