Find out operating leverage, Finance Basics

(i) Find out operating leverage from the following data:

Sales                             Rs.50000

Variable Cost               60%

Fixed Cost                   Rs.12000

(ii) Compute the financial leverage from the following data:

Net worth                    Rs.25,00,000

Debt/Equity                    3:1

Interest Rate               12%

Operating Profit        Rs.20,00,000

 

 

Posted Date: 3/15/2013 2:19:58 AM | Location : United States







Related Discussions:- Find out operating leverage, Assignment Help, Ask Question on Find out operating leverage, Get Answer, Expert's Help, Find out operating leverage Discussions

Write discussion on Find out operating leverage
Your posts are moderated
Related Questions
Types of Stock Markets 1. Over the Counter or OTC and Organised Exchange market This is whereas the selling and buying of securities is done through sellers and buyers ar

Why are financial institutions heavily regulated, with specific focus on their ability to increase or reduce the money supply?

Sole Proprietorship Definition - A sole proprietorship or sole tradership is the oldest and simplest form of business. It is that type of business organization where one person


A. Michael Spence An American economist who was awarded by the Nobel Memorial Prize in Economic Sciences. Spence is a lecturer of management at Stanford University in the Gradu

Financial Instruments in Money Market or Discount Markets Financial Instruments in Money market involve as: 1. Commercial paper 2. Bills of exchange 3. Treasury bills

What are the factors that affect the interest rate and how?

Materials Management - Supply Chain Management Materials management was once a task undertaken without the assistance of computers. Today it is unthinkable as the speed of cal

Quetion1: You are earning 5.2 percent on a certificate of deposit. Inflation is running 3.5 percent. What is the real rate of return on your investment? Question2: Search for

$1,000 of insurance had not been used up by January 31. $325 of insurance had been used up in January