Posted by **selvi** on Monday, June 28, 2010 at 9:56am.

The capital structure of William Corporation limited consists of an ordinary share capital of

Rs.20 lakhs (shares of Rs.100 per value) and Rs.20 lakhs of 10% debentures. The unit sales

increased by 20% from 2,00,000 units to 2,40,000 units, the selling price is Rs.10 per unit,

variable cost amounts to Rs.6 per unit and fixed expenses amount to Rs.2,00,000. The

income tax rate is assumed to be 50%.

You are required to calculate the following:

a. The percentage increase in earnings per share.

b. The degree of financial leverage at 2,00,000 units and 2,40,000 units

c. The degree of operating leverage at 2,00,000 units and 2,40,000 units

## Answer This Question

## Related Questions

- Capital Investment and Financing Decisions. - 1)Find the present value of Rs. 2...
- Finance - Western Corporation’s stock was $10 per share when purchased, and is ...
- Corporate Finance - You are given the following for Cardinal & Cardinal, Inc. ...
- Finance - Medallion Cooling Systems, Inc., has total assets of $10,000,000, EBIT...
- accounting - The two cases described below are independent of each other. Each ...
- ACC291 - The following stockholders' equity accounts arranged alphabetically are...
- Finance - We are considering the introduction of a new product. Currently we are...
- Accounting Corporations - Birch issued 200 shares of $12 par common stock in ...
- College Finance - Warp Tense Ltd. has the following assets: Current Assets (...
- Finance - Atlantic Seafood has determined that $17,000 is the break-even level ...

More Related Questions