Determine the firms eps, Finance Basics

Assignment Help:

The operating income of H Ltd amounts to Rs. 186000. It pays 35% tax on its income. Its capital structure consists of the following:

14% Debentures                                                                              Rs. 500000

15% Preference Shares                                                                         100000

Equity Shares (Rs.100 each)                                                                  400000

(I)     Determine the firm's EPS.

(II)    Determine the DOF at the current level of EBIT.

(III)   Determine the % change in EPS associated with 30% change (both increase and decrease) in EBIT.

(IV)   What additional data do you need to compute operating as well as combine leverage?

 

 

 


Related Discussions:- Determine the firms eps

Money and banking course, Ask questioSay that a buyer of bonds values good ...

Ask questioSay that a buyer of bonds values good bonds at $500 and values bad bonds at $250. Sellers of both good and bad bonds value them at $350. If the fraction of good sellers

IRR, How to compute the IRR of data

How to compute the IRR of data

Working Capital, AsStudents will analyze and synthesize the financial repor...

AsStudents will analyze and synthesize the financial reports of an organization of their choice and present their findings in a PowerPoint presentation (with completed Notes sectio

the trade-off theory of capital structure, Please describe the trade-off t...

Please describe the trade-off theory of capital structure and how it vary from the Modigliani and Miller theorem with taxes.

Compute the risk premium for the stock, Compute the risk premium for the st...

Compute the risk premium for the stock of Omega Tools if the risk free rate is 6%, the expected market return is 12%, and Omega's stock has a beta of .8.    Ome

Expectation theory, Expectation Theory The theory states here that the...

Expectation Theory The theory states here that the yield curve depends on the expectation concerning with future inflation rates. The rate on long-term bonds will exceed, If i

Interest, #what is an interest?

#what is an interest?

Bird-in-hand theory, Bird-in-hand Theory Advanced via John Leitner in ...

Bird-in-hand Theory Advanced via John Leitner in year 1962 and furthered with Myron Gordon in year 1963. Argues such shareholders are risk averse and prefer specific. Dividend

Constant dps plus extra or surplus, Constant DPS plus Extra or Surplus ...

Constant DPS plus Extra or Surplus 1. Beneath this policy a constant DPS is paid every year. Nonetheless extra dividends are paid in years of supernormal earnings. 2. It prov

Example of valuation of bonds and debentures, Example of Valuation of Bonds...

Example of Valuation of Bonds and Debentures K is contemplating purchasing a 3 year bond worth 40,000/= carrying a nominal coupon rate of interest of 10 percent.  K necessary

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd