Question

The share capital of a company is Rs. 20,00,000 with shares of face value of Rs. 10. The company had debt capital of Rs 12,00,000 at 10 % rate of interest. The sales of the firm are 6,00,000 units per annum at a selling price of Rs 5 per unit and variable cost is Rs 3 per unit. The fixed cost amounts to Rs 4,00,000. the company pays tax at 35%. If the Sales increases by 20% , Calculate: The Financial leverage at the two levels.The Operating leverage at the two levels.The percentage increase in Earning per share. ​

Answer 1

Answer:

5,00,000 and amount of loan Rs. 4,00,000 these creditors called as Answer fully secured creditors А. B.

Explanation:

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