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EBIT-EPS Analysis of Capital Structure

The document presents a numerical analysis of capital structure using EBIT-EPS analysis, detailing various alternatives for capital structure decisions. It includes calculations for Earnings Before Interest & Tax (EBIT), interest, tax, and earnings available for equity shareholders across three alternatives. The analysis aims to assess the impact of different capital structures on Earnings Per Share (EPS).

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AnishKaria
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7 views1 page

EBIT-EPS Analysis of Capital Structure

The document presents a numerical analysis of capital structure using EBIT-EPS analysis, detailing various alternatives for capital structure decisions. It includes calculations for Earnings Before Interest & Tax (EBIT), interest, tax, and earnings available for equity shareholders across three alternatives. The analysis aims to assess the impact of different capital structures on Earnings Per Share (EPS).

Uploaded by

AnishKaria
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Numerical on Capital Structure (EBIT-EPS Analysis)

Solution No. – 1

Earnings Before Interest & Tax (EBIT) = Rs.


Existing Capital (Total) = Rs.
No. of Alternatives =

Alternative Alternative - Alternative -


Particulars
-I II III
Earnings Before Interest & Tax (EBIT)

Less: Interest

Earnings Before Tax (EBT)

Less: Tax

Earnings After Tax (EAT)

Less: Preference Dividend

Earnings Available for Equity Shareholders

Total No. of Equity Shares

Earnings Per Share (EPS) (Rs.)

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