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Calculate the EPS

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Reference no: EM132175231

QUESTION - FINANCIAL LEVERAGE

A Company has $ 100000.00 10% debentures and 5000 equity shares outstanding. It is in 50% tax bracket. Assuming three levels of EBIT

(i) $ 50000

(ii) $ 30000

(iii) $ 70000

Calculate the EPS and interpret the resulting effect of financial leverage.

Reference no: EM132175231

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