Question: Explain how EPS is calculated with the help of a hypothetical example considering all the factors such as debentures, preference shares, taxes etc. Show what

Explain how EPS is calculated with the help of a hypothetical example considering all the factors such as debentures, preference shares, taxes etc. Show what will be the impact of the following on EPS

a) Increase in the rate of interest of debentures

b) Decrease in the tax rate

c) Increase in EBIT

d) Issuing of new equity shares

e) Issuing of new preference shares

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