XYZ Ltd has the following data:
Units produced and sold 20000
Selling price Rs 40 per unit
Variable cost Rs 30 per unit
Total fixed operating cost Rs 30000
10% term loan Rs 100000
Equity capital (including share premium) Rs 60000
(face value of Rs 10 each and share premium of Rs 5 each)
Tax rate 30%
a) Calculate the EPS
b) If the sales increases by 5%, what will be effect on the EPS
c) If the sales decreases by 1%, what will be the effect on the EPS