Question

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.

Answer 1

Answer:

I THINK THIS IS MATHS NOTE ECONOMY