Particulars (Amount in $) Company Company Company B EBIT (Eamings Before Interest and Tax) 200000 200000 200000 Less: Interest (10% Debentures) 30000 40000 EBT (Earings Before Tex) 200000 170000 160000 Less: Income Tax 30% 60000 51000 48000 Earnings Available for Equity Shareholders 140000 119000 112000 (EAT) 10000 No. of Equity Shares (Existing + Additional) 8000 7000 17 14 18 867 Earnings Per Share (EPS) 14 1.7 Financial Leverage (EBIT/EAT) Consider the above information related to three companies Based on the information, a) Comment how use of fixed-interest bearing securities (Debentures) contribute to change in EPS? (Two point) 12 martes) b) Which company contributes to higher financial risk? (1 mark) Give rationale for your choice (two points cray) (1 mark) 3 US XX 15 FF E 3 2 B G -- T va 22 PDF PO A tv W MacBook Air