Determine the dol for firm, Finance Basics

XYZ Ltd. has an average selling price of Rs.10 per unit. Its variable cost are Rs.7 , and fixed cost amount to Rs.170000. it finances all its assets by equity funds. It pays 35% tax on its income.

ABC Ltd. is identical to XYZ Ltd except in the pattern of financing. The latter finances its assets 50% by equity and 50% by debt, the interest on which amounts to Rs.20000.

Determine the DOL, DOF and DOC at Rs.70000 sales for both the firm, and interpret the results.


Posted Date: 3/15/2013 2:21:02 AM | Location : United States

Related Discussions:- Determine the dol for firm, Assignment Help, Ask Question on Determine the dol for firm, Get Answer, Expert's Help, Determine the dol for firm Discussions

Write discussion on Determine the dol for firm
Your posts are moderated
Related Questions
Inventories turnover 8 times 4 times Receivable days 63 days 40 days

I am struggling with a PowerPoint Presentation 8-10 slide the calculations and understanding Traditional IRAs and Roth IRAs, I guess that I need to prepare this for an audience. Sh

I need a conclusion for my assignment for financial accounting vs management accounting

Goals of firm's Credit Standards The goal of the firm's credit policy is to maximize the value of such firm. To complete this goal, the evaluation of investment in receivables

Looking at the income statement, balance sheet and cash flow statement of the company and relating it with the non financial factors, I have the important observations as below:-

Illustrate in brief about the Investment  Process A  typical  investment  decision  undergoes  a  five  step  procedure which, in turn, forms the foundation of investment pr

Similarities between Equity Finance and Preference Similarities among Equity Finance and Preference are as follows: a) Both may be permanent whether preference share capita

Classification of Preference Share Capital i) Redeemable Class Redeemable preferential shares are bought back via Issue Company after minimum redemption duration however

Enumerate about the Redemption Yield or Yield to Maturity (YTM) Redemption yield is indicated or promised rate of return an investor would receive from a bond purchased at t

There are four different commonly used financial hedging techniques and some operational hedging techniques that firms use to manage currency risk. Drawing on literature, critical