FINANCIAL LEVERAGE (Table) Homework Help

EPS for Various EBIT Levels


Case 1: A 40 per cent increase in EBIT (from Rs 10,000 to Rs 14,000) results in 81.25 per cent increase in EPS (from Rs 3.2 to Rs 5.8).

Case 2: A 40 per cent decrease in EBIT(from Rs 10,000 to Rs 6.000) leads to 81.25 per cent decrease in EPS (from Rs 3.2 to Re 0.6).

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Posted by: andy

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