LMN Corp. has the following capital structure:

Particulars	Amount (₹)
Equity Share Capital	10,00,000
Preference Share Capital	5,00,000
Debentures	4,00,000
Retained Earnings	2,00,000

The company earned a profit before interest and tax of ₹6,00,000. The interest on debentures is 10%, and the tax rate is 30%.

1. PREPARE the statement of retained earnings.
2. CALCULATE the Earnings Per Share (EPS).
3. ANALYZE the effect on EPS if the profit before interest and tax increases by 20%.
4. DETERMINE the new EPS if the tax rate is reduced to 25%.
5. DISCUSS the impact of changing the capital structure by converting debentures into equity.