1. Illustrate an EPS/EBIT chart that reflects negative EPS values. 2. Define a vacant niche using an example XXXXXXXXXXDefine and give an example of wikis and tweets. 3. Show algebraically that the...

1.) Negative EPS/EBIT will be possible when there is a extra-ordinary loss during the year which is
reflected below with the graph as shown below, as if EBIT is negative then EPS will also be
negative and end result will give positive which is not our requirement.
9% Debt Instrument $100,000

EAT in ($)
-63400 -62800 -62200 -61600 -61000 -60400 -59800
EPS = EAT/Number of
Equity Shareholders -6.34 -6.28 -6.22 -6.16 -6.1 -6.04 -5.98
EBIT 5000 6000 7000 8000 9000 10000 11000
EBIT/EPS -0.00127
-
0.00105
-
0.00089
-
0.00077
-
0.00068
-
0.00060
-
0.00054
Particulars Amount in $
EBIT 5000 6000 7000 8000 9000 10000 11000
Interest 9000 9000 9000 9000 9000 9000 9000
EBT -4000 -3000 -2000 -1000 0 1000 2000
Less: Tax 40% -1600 -1200 -800 -400 0 400 800
EAT -2400 -1800 -1200 -600 0 600 1200
Less: Extraordinary
Losses
61000 61000 61000 61000 61000 61000 61000
Revised EAT ...