EBIT of a company for the year is 9 lakh and capital structure of the company includes
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EBIT of a company for the year is ₹9 lakh and capital structure of the company includes equity share capital (face value ₹10 each) of ₹30 lakh, 10% debentures of ₹10 lakh and 12% preference share capital of ₹10 lakh. Tax rate for the company is 30%. Calculate financial leverage and EPS. Also interpret financial leverage. Also show by how much EPS will change if EBIT changes by 40% from the current level.
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DFL EBITEBT Preference dividend amount1 t DFL 98 1201 030 143 EPS 560 123 147 DFL 14...View the full answer
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