Which company is performing better

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Reference no: EM132065169

The following data is given on Companies M and N

Details Co. M Co. N

Volume of production and sales 80000 units 100000 units

Selling price per unit Rs 10 Rs 8

Variable cost per unit Rs 4 Rs 3

Total Fixed operating cost Rs 240000 Rs 250000

The capital Structure:

Equity share capital at par Rs 200000 Rs 200000

10% debentures Rs 600000 Rs 200000

15% term loan Rs 400000 Rs 200000

Tax rate 30% 30%

a) Based on the EPS, which company is performing better? (Assume face value of equity share as Rs 10)

Reference no: EM132065169

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