Determine eps and dfl, Finance Basics

The operating profit (EBIT) of ABC Ltd is Rs. 1,60,000. Its capital structure consists of the following:

10% Debentures Rs. 500000
12% Preference Shares 100000
Equity Shares (Rs.100 each) 400000

The company is in the tax bracket of 35%. The withholding tax on preference dividend is 10%.
(i) Determine EPS
(ii) Determine the DFL
(iii) Determine the % change in EPS if EBIT increase by 30%.
(iv) Assuming DOL 2, determine the DCL.

Posted Date: 3/15/2013 2:24:02 AM | Location : United States







Related Discussions:- Determine eps and dfl, Assignment Help, Ask Question on Determine eps and dfl, Get Answer, Expert's Help, Determine eps and dfl Discussions

Write discussion on Determine eps and dfl
Your posts are moderated
Related Questions
Present Value of an Annuity - DCF Technique An individual investor may not necessarily acquire a lump sum after several years however rather obtain a constant periodic amount

Blue Chips and Going Short or Long on Share - Stock Market Blue Chips Are first class securities of firms that have sound share capital and are internationally

John has just inherited $50,000 from his Uncle Ted. John is currently studying his Bachelor of Accounting degree at CQUniversity part-time and has three (3) years of study remainin

Task The following information has been extracted from the accounts of R Ltd., a manufacturer and distributor of home cordless phone in Hong Kong.

In the present case, we need to take a decision about implementing one of the available two options, based on various factors. The available two options are either to complete a se


Interpolation method Consequently, r denotes required rate of return Consequently, r = 14 percent + (15 percent - 14 percent) x 253 .646 /253 .646 + 5.375

Louis Futon Co. is currently an all-equity firm. The current market value of the company is $80 million. The corporate tax rate is 35%. What is the new value of the company if Loui

what is the applicability of a financial cycle to poultry?

Advantages of Investment in Shares 1. Income in form of dividends When you contain shares of a company then you become a part-owner of such company and hence you will be