● 4. Relevant information about three companies are given as follows:

BIL PIL MIL Annual production capacity (units) 1,00,000 1,50,000 2,50,000 Capacity utilisation and sales 75% 75% 75%

Unit selling price (`) 40 50 50 Unit variable cost (`) 15 15 20 Fixed cost p.a. (`) 2,00,000 3,00,000 5,00,000 Equity Capital (1,000 shares for each company) (`) 5,00,000 7,00,000 10,00,000 10% Preference Share Capital (`) — 50,000 1,00,000 15% debentures (`) 1,00,000 2,00,000 3,00,000 Calculate Operating Leverage, Financial Leverage, Combined Leverage and EPS of these three companies and comment.