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The financial manager of A ltd.co. expects that its EBIT in the current year is 10,000. The firm has 5% Deb. Amounting to Rs. 40,000., while 10% Pref. Share amounts to Rs. 20,000. What would be the EPS, under different plans If EBIT is :
1. 6000
2. 14000
Tax rate may be assumed as 35%. No. of equity shares outstanding are 1000.
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Explain Capital Budgeting and its methods.
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