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Given the Earnings before interest and taxes(EBIT) is Rs 30000 Interest payment is Rs 10000 Dividend on the preference shares Rs9000 Taxes being 50% of
Given the Earnings before interest and taxes(EBIT) is Rs 30000 Interest payment is Rs 10000 Dividend on the preference shares Rs9000 Taxes being 50% of the profit before taxes(PBT). Number of outstanding equity shares 10000 What would be the earning per share(EPS) and degree of financial leverage (DFL), What would be the change in EPS, and DFL, if the EBIT increases to Rs50000 and Rs80000
Note- you have to calculate three EPS and three calculations for DFL
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