The operating income of h ltd amounts to rs 186000 it pays, Ask an Expert

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The operating income of H Ltd amounts to Rs. 186000. It pays 35% tax on its income. Its capital structure consists of the following:

14% Debentures Rs. 500000

15% Preference Shares 100000

Equity Shares (Rs.100 each) 400000

(I) Determine the firm's EPS.

(II) Determine the DOF at the current level of EBIT.

(III) Determine the % change in EPS associated with 30% change (both increase and decrease) in EBIT.

(IV) What additional data do you need to compute operating as well as combine leverage?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9528845

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