The following data is given on Companies M and N
Details Co. M Co. N
Volume of production and sales 80000 units 100000 units
Selling price per unit Rs 10 Rs 8
Variable cost per unit Rs 4 Rs 3
Total Fixed operating cost Rs 240000 Rs 250000
The capital Structure:
Equity share capital at par Rs 200000 Rs 200000
10% debentures Rs 600000 Rs 200000
15% term loan Rs 400000 Rs 200000
Tax rate 30% 30%
a) Based on the EPS, which company is performing better? (Assume face value of equity share as Rs 10)