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The earnings before interest and taxes of a firm is Rs 1 , 0 0 , 0 0 0 . If it has raised funds

The earnings before interest and taxes of a firm is Rs

1, 00, 000 .

If it has raised funds through debenture Or Rs

2, 00, 000

10 %

interest rate and number of shares outstanding are

10, 000

then calculate EPS and degree of financial leverage if EBIT changes to Rs

. 1, 50, 000 .

Corporate tax rate is

50 % .

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