There is given following information, calculate by showing all steps and comments on the (a) Earnings Per Share (EPS) (b

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There Is Given Following Information Calculate By Showing All Steps And Comments On The A Earnings Per Share Eps B 1 (96.71 KiB) Viewed 23 times

There is given following information, calculate by showing all steps and comments on the (a) Earnings Per Share (EPS) (b) Expected Earnings Per Share (c) Degree of Operating Leverage (d) Degree of Financial Leverage (e) Degree of Total Leverage of Sober & Sons Limited Corporation for 2021 by considering the following Capital Structure: (a) Debt / Assets = 60%, Probability of Indicated sales 0.2 0.5 0.3 Sales (in thousand dollar) $600 $900 $1200 Fixed Cost (in thousand dollar) (350) (350) (350) Variable Cost (in thousand dollar) (300) (400) (600) Total Cost (Except Interest) (650) (750) (950) EBIT (in thousand dollar) (50) 150 250 Consider the following: (a) The firm is in the 40 percent tax bracket (b) Cost of debt is 16% (c) The value per share of Sober & Sons Limited Corporation is $100 (d) Total Capital of Sober & Sons Limited Corporation is $2200000