The balance sheet and the income statement for 2020 of SUKUBA Corporation are as follows: Balance...
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The balance sheet and the income statement for 2020 of SUKUBA Corporation are as follows: Balance sheet on 31/12/2020 Debt Current assets Net fixed assets Total Assets Sales Tk. 2,00,000 2,00,000 EBIT Fixed cost Variable costs 4,00,000 Income Statement on 31/12/2020 Taxes (40%) Net Income Common equity Total liabilities and equity Referring to the question results. 2,00,000 (30,000) (1,10,000) 60,000 (24,000) 36,000 When the firm finances 50% of its capital with debt, it incurs the cost of 12%. The total number of shares outstanding is 20,000. Based on the above information show the effects of leverage on EPS with your comments when I. D/A = 0% Tk. 0 4,00,000 4,00,000 II. D/A = 50 calculate the DOL, DFL, and DTL and comments on your The balance sheet and the income statement for 2020 of SUKUBA Corporation are as follows: Balance sheet on 31/12/2020 Debt Current assets Net fixed assets Total Assets Sales Tk. 2,00,000 2,00,000 EBIT Fixed cost Variable costs 4,00,000 Income Statement on 31/12/2020 Taxes (40%) Net Income Common equity Total liabilities and equity Referring to the question results. 2,00,000 (30,000) (1,10,000) 60,000 (24,000) 36,000 When the firm finances 50% of its capital with debt, it incurs the cost of 12%. The total number of shares outstanding is 20,000. Based on the above information show the effects of leverage on EPS with your comments when I. D/A = 0% Tk. 0 4,00,000 4,00,000 II. D/A = 50 calculate the DOL, DFL, and DTL and comments on your
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D OL E BIT E BIT Interest Exp ense D FL E BIT Interest Exp ense Tax E BIT Interest ... View the full answer
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1259024962
6th Canadian edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
Posted Date:
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