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(c) Two Companies are earning on similar business with the same amount of capital a indicated below: A Ltd. Tk. 50,00,000/= B. Ltd. Tk. 20,00,000/->
(c) Two Companies are earning on similar business with the same amount of capital a indicated below: A Ltd. Tk. 50,00,000/= B. Ltd. Tk. 20,00,000/-> Equity shares of Tk. 100/= Each 14% Debentures and Loan Tk. 30,00,000/-> Show the earnings per share of the two companies at (a) 20% and (b) 10% retu on capital and comment on the financial leverage. Assume 50% income-tax. (c) Two Companies are earning on similar business with the same amount of capital a indicated below: A Ltd. Tk. 50,00,000/= B. Ltd. Tk. 20,00,000/-> Equity shares of Tk. 100/= Each 14% Debentures and Loan Tk. 30,00,000/-> Show the earnings per share of the two companies at (a) 20% and (b) 10% retu on capital and comment on the financial leverage. Assume 50% income-tax
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