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    With Debt With Equity Sales 10044000 10044000 Units 348750 348750 With Changes

    Uploaded by

    Khush Gosrani
    The document compares the financial statements of an old company and a new company with debt or equity financing. Under both new scenarios, sales and costs remain the same but the new company generates more EBIT and net profit due to lower interest costs from equity financing. The EPS is higher at $4.74 for the company with debt and $3.27 for the company with equity.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    With Debt With Equity Sales 10044000 10044000 Units 348750 348750 With Changes

    Uploaded by

    Khush Gosrani
    22 views3 pages
    The document compares the financial statements of an old company and a new company with debt or equity financing. Under both new scenarios, sales and costs remain the same but the new company generates more EBIT and net profit due to lower interest costs from equity financing. The EPS is higher at $4.74 for the company with debt and $3.27 for the company with equity.

    Original Description:

    a excel sheet for stocks

    Original Title

    136889_636614495857518352

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    © © All Rights Reserved

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    The document compares the financial statements of an old company and a new company with debt or equity financing. Under both new scenarios, sales and costs remain the same but the new company generates more EBIT and net profit due to lower interest costs from equity financing. The EPS is higher at $4.74 for the company with debt and $3.27 for the company with equity.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    22 views3 pages

    With Debt With Equity Sales 10044000 10044000 Units 348750 348750 With Changes

    Uploaded by

    Khush Gosrani
    The document compares the financial statements of an old company and a new company with debt or equity financing. Under both new scenarios, sales and costs remain the same but the new company generates more EBIT and net profit due to lower interest costs from equity financing. The EPS is higher at $4.74 for the company with debt and $3.27 for the company with equity.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 3

    1 Old New with Debt New with Equity

    Sales 12960000 12960000 12960000


    Less: VC 10200000 8160000 8160000
    Contribut 2760000 4800000 4800000
    Less: FC 1560000 1800000 1800000
    EBIT 1200000 3000000 3000000
    Less: Inter 384000 1104000 384000
    NPBT 816000 1896000 2616000
    Less: Tax 326400 758400 1046400
    NPAT 489600 1137600 1569600
    Equity sha 240000 240000 480000
    EPS 2.0400 4.740 3.27

    2 New with Debt New with Equity


    Sales 12960000 12960000
    Less: VC 8160000 8160000
    Contribut 4800000 4800000
    Less: FC 1800000 1800000
    EBIT 3000000 3000000
    Less: Inter 1104000 384000
    NPBT 1896000 2616000
    Less: Tax 758400 1046400
    NPAT 1137600 1569600
    Equity sha 240000 480000
    EPS 4.74 3.27
    With
    changes With Debt With Equity
    Sales 10044000 10044000 Units 348750 348750
    Less: VC 6324000 6324000
    Contribut 3720000 3720000
    Less: FC 1800000 1800000
    EBIT 1920000 1920000
    Less: Inter 1200000 480000
    NPBT 720000 1440000
    Less: Tax 288000 576000
    NPAT 432000 864000
    Equity sha 240000 480000 Calculation of EPS by assuming EPS = X for both t
    EPS 1.8 1.8 1.8

    New with
    3 Old New with Debt Equity
    Sales 9128347.82608696 7840800 5896800 Units 316956.5 272250
    Less: VC 10200000 8160000 8160000
    Contribut 1944000 2904000 2184000
    Less: FC 1560000 1800000 1800000
    EBIT 384000 1104000 384000
    Less: Inter 384000 1104000 384000
    NPBT 0 0 0
    Less: Tax 0 0 0
    NPAT 0 0 0
    Equity sha 240000 240000 480000
    EPS 0 0 0

    OL 5.0625 2.6304347826 5.6875


    FL #DIV/0! #DIV/0! #DIV/0!
    18.13333

    y assuming EPS = X for both the situations

    204750

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