Case 1 The following table demonstrates the projected figures of the Companies A, B and C for 2021. Table (1): Projected Figures for 2021 Company Outstanding Loan* Interest Expense* Net Profit* Shareholders Equity* Number of Shares** A 16,065 1,723 830 5,892 39 B 5,045 605 2,320 24,799 386 C 2,314 352 2,475 12,563 52 *All the figures are in CAD millions. **Number of Shares are in millions. The following graph shows the movement in lending rates in Jan-Dec of 2021 Jan 2021 Feb 2021 March 2021 April 2021 May 2021 June 2021 July 2021 August 2021 Sep 2021 Oct 2021 Nov 2021 Dec 2021 10.24% 10.15% 10.03% 9.94% 9.93% 9.85% 9.77% 9.7% 9.62% 9.66% 9.56% 9.51% The companies pay their installments semi-annually; one in June and another one in December. As the interest rates fell sharply, all the three companies renegotiated the interest rates on their outstanding loans in May 2017. Corporate Tax rate for all the three companies is 25%. a) Calculate the revised Earning per Share (EPS) and Return on Equity (ROE) of all the three companies after renegotiation b) Explain how you reached the numbers the answer sheet. You can incorporate any additional assumption behind your calculation.

Do 15 Mic World Review View nces Mailings A Aa E3 217 A. A | . I Normal 1 No Spaci... Heading 1 Heading 2 Title Sut Styles Paragraph Case 1 The following table demonstrates the projected figures of the Companies "A", "B" and "C" for 2021. Net Profit* Number of Shares** Table (1): Projected Figures for 2021 Outstanding Interest Company Loan Expense* 16,065 1,723 B 5,045 605 C 2,314 352 * All the figures are in CAD millions. Shareholder's Equity* 5,892 24,799 39 830 2,320 2,475 386 12,563 52 **Number of Shares are in millions. The following graph shows the movement in lending rates in Jan-Decof 2021 Jan 2021 Feb 2021 March 2021 April 2021 May 2021 June 2021 July 2021 August Sep 2021 2021 Nov 2021 Dec 2021 2021 10.24% 10.15% 10.03% 9.94% 9.93% 9.85% 9.77% | 9.7% 9.62% 9.66% 9.56% 9.51% The companies pay their installments semi-annually one in June and another one in December. As the Interest rates fell sharply, all the three companies renegotiated the interest rates on their outstanding loans in May 2017. Corporate Tax rate for all the three companies is 25%. a) Calculate the revised Earning per Share (EPS) and Return on Equity (ROE) of all the three companies after renegotiation b) Explain how you reached the numbers the answer sheet. You can incorporate any additional assumption behind your calculation, w 16C DOLL