NO LEVERAGE

TOTAL ASSET 1,000,000

DEBT 0
EQUITY 10,000,000
SHARE PRICE 20₹
OUTSTANDING SHARES 500,000
TAX RATES 50.00%

RECESSION RECOVERY BOOM

EBIT 600,000 1,200,000 1,800,000
INTEREST 0 0 0
PROFIT(EBT) 300000 600000 900000
ROE 3% 6% 9%
EPS 0.6 1.2 1.8

WITH LEVERAGE
TOTAL ASSET 1,000,000 INTEREST
DEBT 4,000,000 10.00%
EQUITY 4,000,000
SHARE PRICE 20₹
OUTSTANDING SHARES 200,000
TAX RATES 30.00%

RECESSION RECOVERY BOOM

EBIT 600,000 1,200,000 1,800,000
INTEREST 400,000 400,000 400,000
PROFIT(EAT) 140,000 560,000 980,000
ROE 4% 14% 25%
EPS 0.7 2.8 4.9
tax rates
0.00%
30.00%
35.00%
50.00%
40.00%
SALES VARIABLE CONTRIBUTION FIXED COST EBIT INTEREST EBT
1,000,000 200,000 800,000 100,000 700,000 20,000 680,000
1,100,000 300,000 800,000 200,000 600,000 30,000 570,000
1,200,000 400,000 800,000 300,000 500,000 40,000 460,000
 Data
SALES Sum of VARIABLE Sum of CONTRIBUTION Sum of FIXED COST Sum of EBIT
1,000,000 200,000 800,000 100,000 700,000
1,200,000 400,000 800,000 300,000 500,000
Total Result 600,000 1,600,000 400,000 1,200,000
Sum of INTEREST Sum of EBT
20,000 680,000
40,000 460,000
60,000 1,140,000
800000

700000

600000
Data
500000
Column C
Column D
400000
Column E
Column F
300000
Column G
200000

100000

0
SALES 1000000

This shape represents a This shape represents a This shape represents a

slicer. Slicers are supported
in Excel 2010 or later.
If the shape was modified in
an earlier version of Excel,
or if the workbook was saved
in Excel 2003 or earlier, the
slicer cannot be used.
slicer. Slicers are supported
in Excel 2010 or later.
If the shape was modified in
an earlier version of Excel,
or if the workbook was saved
in Excel 2003 or earlier, the
slicer cannot be used.
slicer. Slicers are supported
in Excel 2010 or later.
If the shape was modified in
an earlier version of Excel,
or if the workbook was saved
in Excel 2003 or earlier, the
slicer cannot be used.