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Earnings before interest and tax (EBIT) Equity share capital (1000 shares of *10 each) Preference and debt capital Change in EBIT Corporate tax 20,000


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Earnings before interest and tax (EBIT) Equity share capital (1000 shares of *10 each) Preference and debt capital Change in EBIT Corporate tax 20,000 10,000 Nil +/- 25% 50% You are required to: a) Compute EPS. Show the impact on EPS due to proposed changes in EBIT. b) Compute the DFL

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