case 1

total equity 200000 200000 200000

EBIT 5000 12000 25000
Tax % 35% 35% 35%
Tax amt 1750 4200 8750
PAT 3250 7800 16250
EPS 0.1625 0.39 0.8125
ROIC 2.50% 6.00% 12.50%
ROE 1.63% 3.90% 8.13%

case2
total equity 100000 100000 100000
debenture 100000 100000 100000
total capital 200000 200000 200000
EBIT 5000 12000 25000
Interest 14000 14000 14000
PBT -9000 -2000 11000
Tax 35% 0 0 3850
PAT -9000 -2000 7150
EPS -0.9 -0.2 0.715
ROIC 2.50% 6.00% 12.50%
ROE -9.00% -2.00% 7.15%

case 3
total equity 50000 50000 50000
debenture 150000 150000 150000
total capital 200000 200000 200000
EBIT 5000 12000 25000
Interest 21000 21000 21000
PBT -16000 -9000 4000
Tax 35% 0 0 1400
PAT -16000 -9000 2600
EPS -3.2 -1.8 0.52
ROIC 2.50% 6.00% 12.50%
ROE -32.00% -18.00% 5.20%
case 1 case 2 case 3
old capial 1000000 old capial 1000000 old capital 1000000
total no of share 150000 total no of share 100000 total no of eq sh 100000
new equity
share capital 500000 debenture 500000 pref share 500000
total capital 1500000 total capital 1500000 total capital 1500000
EBIT 375000 EBIT 375000 EBIT 375000
Tax 35% 131250 interest 70000 PBT 375000
PAT 243750 PBT 305000 Tax 35% 131250
ROA 0.1625 Tax 35% 106750 PAT 243750
EPS 1.625 PAT 198250 pref dividend 70000
ROE 0.1625 ROA 0.132167 Earning available 173750
EPS 1.9825 EPS 1.7375
ROE 19.8% ROA 16.25%
ROE 0.17375
case 1 case 2
no of share 15000 no of share 12500
equity 750000 equity 500000
debt 250000 debt 500000
total capital 1000000 total capital 1000000
EBIT 150000 EBIT 150000
Interest 14% 35000 Interest 16% 80000
PBT 115000 PBT 70000
Tax 35% 40250 Tax 35% 24500
PAT 74750 PAT 45500
EPS 4.983333 EPS 3.64
case 1 case 1
no of share 9000 no of share 6000
total equity 180000 total equity 120000
total debt 120000 total debt 180000
total capital 300000 total capital 300000
EBIT 45000 EBIT 45000
Interest 16% 19200 Interest 18% 32400
PBT 25800 PBT 12600
Tax 35% 9030 Tax 35% 4410
PAT 16770 PAT 8190
EPS 1.863333 EPS 1.365