A company's present capital structure consists of Rs 2,50,000, 14% debt and 2000 equity share. Tax rate is 30%. Calculate the earning per share if EBIT is Rs 80,000. EBIT in a firm is Rs 4,00,000, tax...

A company's present capital structure consists of Rs 2,50,000, 14% debt and 2000 equity share. Tax rate is 30%. Calculate the earning per share if EBIT is Rs 80,000.

EBIT in a firm is Rs 4,00,000, tax rate is 30%, the required rate of return on equity in the absence of borrowing is 15% and personal tax rate is zero. Find out the value of the firm with no leverage under M-M hypothesis.