Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kross Ltd, a company that sells bicycles, had sales last month of Rs 40,000, EBIT of Rs 4,000, net income of Rs 1800, an interest

Kross Ltd, a company that sells bicycles, had sales last month of Rs 40,000, EBIT of Rs 4,000, net income of Rs 1800, an interest expense of Rs 1000, and earnings per share (EPS) of Rs 1.8. The DOL was 6.0. Sales for the coming month are expected to be Rs. 44,000. a) Calculate DFL and DCL. b) What was the profit before taxes last month? c) What is the profit before taxes expected to be for the coming month? d) What is the EPS expected to be for the coming month?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Project Financing Financial Instruments And Risk Management

Authors: Frank J Fabozzi, Carmel De Nahlik

1st Edition

9811231494, 9789811231490

More Books

Students also viewed these Finance questions

Question

6.2 Explain the recruitment process.

Answered: 1 week ago