Proforma

Particulars Plan 1(Equity) Plan II

(Preference) Planiii (Debt)
EBIT 40000 40000 40000
Less: Interest 0 0 5000
EBT/ PBT 40000 40000 35000
Less: Tax @ 50% 20000 20000 17500
EAT/ PAT 20000 20000 17500
Less : Preference Dividend 0 5000 0
Earning Available to Share holders 20000 15000 17500
No.of shares outstanding 15000 10000 10000
Earning Available to Share holders
EPS = 1.33
No.of shares outstanding 1.5 1.75
outstanding share
100000 10

10000
 CALCULATION OF eps WHEN ebit 2 MILLION

Particulars Plan 1(Equity) Plan II (dEBT)

EBIT 2000000 2000000
Less: Interest 0 1400000
EBT/ PBT 2000000 600000
Less: Tax @ 50% 1000000 300000
EAT/ PAT 1000000 300000
Less : Preference Dividend 0 0
Earning Available to Share holders 1000000 300000
No.of shares outstanding 2000000 1000000
Earning Available to Share holders
0.5 0.3
No.of shares outstanding

CALCULATION OF eps WHEN ebit 4 MILLION

Particulars Plan 1(Equity) Plan II (dEBT)

EBIT 4000000 4000000
Less: Interest 0 1400000
EBT/ PBT 4000000 2600000
Less: Tax @ 50% 2000000 1300000
EAT/ PAT 2000000 1300000
Less : Preference Dividend 0 0
Earning Available to Share holders 2000000 1300000
No.of shares outstanding 2000000 1000000
Earning Available to Share holders
1 1.3
No.of shares outstanding
 Plan I

paRTICULARS perunit cost no of units Revenue

Sales 150 20000 3,000,000

less :Variable cost 100 20000 2,000,000

Contribution 1,000,000

Less: Fixed cost 600,000

EBIT 400,000

Less: Interest

EBT 200,000

Less: Tax@ assume 50% 100,000

EAT 100,000

Less: PD 0

Earnings to share holders 100,000

No of shares 2,000

EPS 50

Assume Tax rate is 50%

Assume face value of share is 100

PLAN II

400,000

320,000

80,000

40,000

40,000

40,000

1,000

40