The Capital structure of ABC Ltd, is as under:
Equity share capital ₹ 100 Lacs
10% Debentures ₹ 50 Lacs
The sales for the year 2019 are 1.5 Lac units@ ₹ 40per unit
Also, the variable cost per unit is 20 % of sales revenue
₹ 12 Lacs is the fixed operating cost.
Assume Income tax rate as 40 %
Calculate Operating, Financial and Combined Leverage of the firm and interpret the
result.
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Answer:
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Explanation:
yes 10 lakhs
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