Practice 3 questions - trading on equity

 

EPS Practice Worksheet

EPS Calculation Worksheet

Fill all fields and click Submit. Correct answers turn green , incorrect ones red , and step-by-step explanations appear below.

Question 1

ROI = 40%, Tax = 30%, Face Value = ₹100

Step / Case Case (a)
Equity: 50,00,000
Debentures: 0
Case (b)
Equity: 40,00,000
Debentures: 10,00,000 (20%)
Case (c)
Equity: 30,00,000
Debentures: 20,00,000 (20%)
Capital Employed (₹)
EBIT (₹)
Less: Interest (₹)
EBT (₹)
Less: Tax (₹)
EAT / PAT (₹)
EPS (₹/share)

Question 2

ROI = 20%, Tax = 40%, Face Value = ₹10

Step / Case Case (a)
Equity: 50,00,000
Debentures: 0
Case (b)
Equity: 40,00,000
Debentures: 10,00,000 (30%)
Case (c)
Equity: 30,00,000
Debentures: 20,00,000 (30%)
Capital Employed (₹)
EBIT (₹)
Less: Interest (₹)
EBT (₹)
Less: Tax (₹)
EAT / PAT (₹)
EPS (₹/share)

Question 3

EBIT = ₹2,00,000 (Given), Tax = 30%, Face Value = ₹10

Step / Case Case (a)
Equity: 10,00,000
Debentures: 0
Case (b)
Equity: 4,00,000
Debentures: 6,00,000 (30%)
Capital Employed (₹)
EBIT (₹)
Less: Interest (₹)
EBT (₹)
Less: Tax (₹)
EAT / PAT (₹)
EPS (₹/share)

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