Calculate EPS of Solid Ltd. and Sound Ltd. assuming (a)2% Before Tax return on Assets, (b) 10% Before Tax return on Assets on the basis of the following data. Total Assets Equity Share Capital Sound Ltd. Solid Ltd. 1,00,00,000 * 1,00,00,000 1,00,00,000 50,00,000 50,00,000 (FV = 10 each) 12% Debt Comment on the Financial Leverage of the firm assuming tax rate of 50%. 11. Following is the Balance Sheet of MA Equipment Ltd. Balance Sheet Liabilities Rs. Equity capital (Rs.10 per share) 60,000 Retained earnings 20,000 10% Debt 80,000 Current liabilities 80,000 Assets Rs. Fixed assets 150,000 Current assets 90,000 The firm had Fixed Assets turnover of 4, the fixed operating costs are Rs.100,000, variable costs are 40% and a tax rate of 50%. Find out: Different Leverages for the firm; (ii) Likely level of EBIT if the EPS is (a) Rs.1; (b) Rs.3; (iii) Financial break-even level.