Business Studies, asked by rohanmalhotra6840, 10 months ago

Calculation of operating, financial and combined leverage

Answers

Answered by ishikap920

1

Explanation:

Operating and Financial Leverage Formula

Degree of Operating Leverage = Contribution / EBIT.

Degree of Financial Leverage = EBIT / EBT.

Degree of Combined Leverage = Operating Leverage * Financial Leverage.

Degree of Combined Leverage = Contribution / EBT

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