The balance sheet and the income statement for 2019 of Danon Corporation are as follows:

Balance sheet on 31/12/2019

Current assets Tk. 2,00,000 Debt Tk. 0

Net fixed assets 2,00,000 Common equity 4,00,000

Total Assets 4,00,000 Total liabilities and equity 4,00,000

Income Statement on 31/ 12/ 2019

Sales 2,00,000

Fixed cost (30,000)

Variable costs (1,10,000)

EBIT 60,000

Taxes (40%) (24,000)

Net Income 36, 000

When the firm finances 50% of its capital with debt it incurs the cost of 12%. Total outstanding shares of the company are 20,000. Based on the above information show the effects of leverage on EPS with your comments when

1. D/A = 0%
2. D/A = 50

Referring to the question no. b calculate the DOL, DFL, and DTL and comment on your results.