The share capital of a company is Rs. 20 lakhs with face value of Rs. 10 each. The company has…

The share capital of a company is Rs. 20 lakhs with face value of Rs. 10 each. The company has…

The share capital of a company is Rs. 20 lakhs with face value of Rs. 10 each. The company has debt capital of Rs. 12 lakhs at 10% rate of interest. The sales of the firm are 3,00,000 units per annum at a selling price of Rs.10 per unit and the variable cost is Rs. 6 per unit. The fixed cost amounts to Rs. 4, 00,000. The company pays tax @ 35%. If the sales increase by 10%, Calculate:-i. Percentage increase in EPS.ii. Degree of operating leverage, financial leverage and combined leverage at the two levels.

The share capital of a company is Rs. 20 lakhs with face value of Rs. 10 each. The company has…

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