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1. Assume that ABC Ltd has equity share capital of T153030!) divided into shares of RslS each. The company wishes to raise additional total capital

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1. Assume that ABC Ltd has equity share capital of T153030!) divided into shares of RslS each. The company wishes to raise additional total capital of T for expansion through 353,110,000 in equity shares and {13,00,001} in debts at 10%. The EBIT of the company is {3,011,000 and tax rate is 50%. Calculate EPS. Suggest what will happen to EPS if entire capital was raised through debts. {10 Marks)

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