A company’s earnings before interest and tax is Rs. 5,00,000. The capital structure is as given below:
| Rs. | |
| 10% debentures | 15,00,000 |
| 12% preference shares | 3,00,000 |
| Equity shares of 100 each | 10,00,000 |
The company is in the bracket of 40% tax bracket. Calculate the earnings per share and degree of financial leverage of the company.
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See Answer →Following are the summary of cash transactions extracted from the books of AB Ltd.:
| Rs. | |
| Balance on 1-07-2016 | 35,000 |
| Receipts from customers | 27,83,000 |
| Issue of shares | 3,00,000 |
| Sale of fixed Assets | 1,28,000 |
| 32,46,000 |
| Rs. | |
| Payments to suppliers | 20,47,000 |
| Payment for fixed assets | 2,30,000 |
| Payments for overheads | 1,15,000 |
| Salaries | 69,000 |
| Income-Tax | 2,43,000 |
| Dividends paid | 80,000 |
| Repayment of Bank Loan | 2,50,000 |
| 30,34,000 |
Prepare a cash flow statement of the company for the year ended 30th June, 2017 in accordance with AS-3 (revised) by direct method.
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