Calculate the earnings per share using the target capital structure under downturn conditions only

Question 2 Merk: The deactors of ladumine le stated the stattfancial report that they theatre capital SON D ION To achieve that the camp was genel and the wwwwwwwwwww They do not petite the the other of beste The fant 1 Apt 2010 cold of the following Omar Shares Bhures with a parte pershare. There are crestere Dett The CD 000 with an interest rate Puteh where we too. The value rer her while they need to share on meeste Stadt The directors have forecast that profits before interest and tax of R30 000 000 will be achieved in the forthcoming financial year unless there is further depreciation in the Rand due to a potential downgrade by the rating agencies which would increase their operating costs, in which case they expect the profit to decline by a quarter (Toves are calculated at 28% Required: 0.2.1 Calculate the earnings per share EPS ing the target capital structure under (13) downturn conditions only 9.2.2 Calculate the degree of financial leverage for Padum Limited for the target capital structure and discuss whether the new capital structure is more or less risky than the current structure whose financial leverer was calculated at 1.04 0.2.3 (31 The directors of Palladium Limited here indicated that in future they wish to follow the EBIT-EPS approach in determining the optimal capital structure. Explain to the directors why you would advise against following this approach Question 2 Merk: The deactors of ladumine le stated the stattfancial report that they theatre capital SON D ION To achieve that the camp was genel and the wwwwwwwwwww They do not petite the the other of beste The fant 1 Apt 2010 cold of the following Omar Shares Bhures with a parte pershare. There are crestere Dett The CD 000 with an interest rate Puteh where we too. The value rer her while they need to share on meeste Stadt The directors have forecast that profits before interest and tax of R30 000 000 will be achieved in the forthcoming financial year unless there is further depreciation in the Rand due to a potential downgrade by the rating agencies which would increase their operating costs, in which case they expect the profit to decline by a quarter (Toves are calculated at 28% Required: 0.2.1 Calculate the earnings per share EPS ing the target capital structure under (13) downturn conditions only 9.2.2 Calculate the degree of financial leverage for Padum Limited for the target capital structure and discuss whether the new capital structure is more or less risky than the current structure whose financial leverer was calculated at 1.04 0.2.3 (31 The directors of Palladium Limited here indicated that in future they wish to follow the EBIT-EPS approach in determining the optimal capital structure. Explain to the directors why you would advise against following this approach