a short bar magnet has a magnetic moment of 0.39 J T^-1. the magnetic and direction of magnetic field produced by the magnet at a distance of 20 cm from the center of the magnet on its equatorial line of the magnet is
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Leverage and Capital Structure
1. A Ltd. has an average selling price of Rs. 10 per unit. Its variable unit costs are Rs.
7, and fixed costs amount to Rs. 1,70,000. It finances all its assets by equity funds. It
pays 50% tax on its income. B Ltd. is identical to A Ltd. except in respect of the
pattern of financing. The latter finances its assets 50% by equity and 50% by debt, the
interest on which amounts to Rs.20,000. Determine the degree of operating, financial
and combined leverages at Rs. 7,00,000 sales for both the firms, and interpret the
results.
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