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exotica limited has $ 5 lacs in assets that are financed with 100% equity. The fixed cost = $ 1.2 lacs. The EBIT of the

exotica limited has $ 5 lacs in assets that are financed with 100% equity.

The fixed cost = $ 1.2 lacs.

The EBIT of the company for the year i = $ 80000.

tax rate is = 40%.

In case its EBIT increases by 10%and reduces by 10% Define, calculate & interpret the a. Net income b. Return on equity

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