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Company A has a share capital of 10 million, 1 ordinary shares (ungeared). Company B has a capital of 10 million, made up of
Company A has a share capital of 10 million, 1 ordinary shares (ungeared). Company B has a capital of 10 million, made up of 5 million, 1 ordinary shares and 5 million 10% debentures (geared). Scenario 1: High operating profits of 3 million Scenario 2: Low operating profits of 600 000. REQUIRED 4.1 Calculate and evaluate the effect that scenario 1 and 2 have on EPS and gearing. (10 Marks)
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Calculate the effect of scenarios on Earnings Per Share EPS and gearing Company A Ungeared Earnings ...
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Frank Woods Business Accounting Volume 2
Authors: Frank Wood, Alan Sangster
10th Edition
0273693107, 978-0273693109
