1. a) The capital structure of Sonar Bangla Insurance Ltd is recently sold 10000 units at...

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1. a) The capital structure of Sonar Bangla Insurance Ltd is recently sold 10000 units at Tk. 7.50 per unit. Annual fixed cost is Tk. 22500 and variable cost per unit is a Tk. 3.00. Annual interest charges on debt capital of Tk. 80000.00 at 10 % and firm has 12% preferred stock of Tk. 40000. The company currently has 2000 shares of common stock. Assume that the company is in 40% tax bracket. On the basis of the above data you are required to calculate: 10 10 I. Percentage increase in earnings per share (EPS) at- II. Current level of sales III. 12000 units of sale IV) .15000 units of sales III. Degree of Operating and Financial leverage b) Contrast between i) NPV and IRR ii) Common stock and Preferred stock 1. a) The capital structure of Sonar Bangla Insurance Ltd is recently sold 10000 units at Tk. 7.50 per unit. Annual fixed cost is Tk. 22500 and variable cost per unit is a Tk. 3.00. Annual interest charges on debt capital of Tk. 80000.00 at 10 % and firm has 12% preferred stock of Tk. 40000. The company currently has 2000 shares of common stock. Assume that the company is in 40% tax bracket. On the basis of the above data you are required to calculate: 10 10 I. Percentage increase in earnings per share (EPS) at- II. Current level of sales III. 12000 units of sale IV) .15000 units of sales III. Degree of Operating and Financial leverage b) Contrast between i) NPV and IRR ii) Common stock and Preferred stock