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No hand writing Problem No. 3] A company has the following capital structure Rs. 10,000 Equity Share of Rs. 10 each 2,000 10% Preference Share

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Problem No. 3] A company has the following capital structure Rs. 10,000 Equity Share of Rs. 10 each 2,000 10% Preference Share of Rs. 100 each 1,00,000 2,00,000 2,000 10% Debentures of Rs. 100 each 2,00,000 Calculate the EPS for each of the following levels of EBIT: (1) * 1,00,000 (ii) 60,000 and (iii) * 1,40,000 The company in 50% tax bracket. Calculate the financial leverage taking EBIT level under (1) base

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