(Margham Publications), a widely used resource for B.Com, BBA, and MBA students in Indian universities. 1. Executive Summary of Financial Objectives
Critical Check: Don't forget to add a margin for safety (usually 10-25% of Net Working Capital) if the problem requires a bank loan estimate.
"EPS under Option A = EPS under Option B. Let EBIT be X. (X - 60,000)(1-0.5)/1400 = (X - 108,000)(0.5)/1000. Solve for X." (Students get lost in algebra).
(Margham Publications), a widely used resource for B.Com, BBA, and MBA students in Indian universities. 1. Executive Summary of Financial Objectives
Critical Check: Don't forget to add a margin for safety (usually 10-25% of Net Working Capital) if the problem requires a bank loan estimate.
"EPS under Option A = EPS under Option B. Let EBIT be X. (X - 60,000)(1-0.5)/1400 = (X - 108,000)(0.5)/1000. Solve for X." (Students get lost in algebra).