Question
Two Companies A and B were in the same industry and with almost same levels of turnover. Their sales is 3000 and cost of sales
Two Companies A and B were in the same industry and with almost same levels of turnover. Their sales is 3000 and cost of sales is 50%, Operating expenses is 20%
of sale. Their cost of finance is 8.65% and assume there is no tax on income. Both have depreciation at 10% of the asset block. The equity and debt in Company A is 2000 and 2600. Company B has only equity of 4600. Both companies have fixed assets of 3800. Determine the EBITDA, EBIT, EBT and EAT and EPS. Investor M wants to invests in Company B but wants to replicate the capital structure of Company A how can he do it. Investor J wants to invest in Company A but wants the capital structure of Company B. How can he do it.
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