is EBIT=25,000

OPTION One OPTION Two Option Three

Ordinary shares 50,000 25,000 10,000
8% Debentures 0 2,500 3,000
10% preference 0 0 10,000
EBIT 25,000 25,000 25,000
less interest 0 20000 24000
EBT 25,000 5,000 1,000
less tax 12500 2500 500
EAT 12,500 2,500 500
less pref div 0 0 10000
Earning to ordinar 12,500 2,500 -9,500

eps 0.25 0.1 -0.95

is EBIT=50,000
OPTION One OPTION Two Option Three
Ordinary shares 50,000 25,000 10,000
8% Debentures 0 2,500 3,000
10% preference 0 0 10,000
EBIT 50,000 50,000 50,000
less interest 0 20000 24000
EBT 50,000 30,000 26,000
less tax 25000 15000 13000
EAT 25,000 15,000 13,000
less pref div 0 0 10000
Earning to ordinar 25,000 15,000 3,000

eps 0.5 0.6 0.3

is EBIT=75,000
OPTION One OPTION Two Option Three
Ordinary shares 50,000 25,000 10,000
8% Debentures 0 2,500 3,000
10% preference 0 0 10,000
EBIT 75,000 75,000 75,000
less interest 0 20000 24000
EBT 75,000 55,000 51,000
less tax 37500 27500 25500
EAT 37,500 27,500 25,500
less pref div 0 0 10000
Earning to ordinar 37,500 27,500 15,500
eps 0.75 1.1 1.55