Find out eps, Financial Management

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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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