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
Benefits of Payback Period 1. use simply and understand and it has created it popular among in ascertaining the viability of venture executives, mainly traditional financial m

Matching Approach - Financing Current Assets This approach is further referred to as the hedging approach. Beneath this approach, the firm adopts a financial plan that involve

Classification of New Issue Market New market can be classified as: (i) A market where firms go to public for the first time through initial public offering (IPO). (ii

Define the term Public Issues - Floating New Issues Under this method, issuing company directly offers to general public/institutions a fixed number of shares

Factors that Influence the Cost of Finance 1. Terms of reference - if short term, the cost is generally low and vice versa. 2. Economic conditions prevailing - If a com

Partnership Definition -Partnership may be defined as a relationship between persons carrying on a business in common with a view of profits. In partnership business, two or mo

Question 1 a) What are the main characteristics of an Efficient Tax system? b) What are the instruments of Public Finance and explain their efficiency. c) Explain what

Asset: - An asset stands for an item of value owned and controlled by an organization which can generate revenue for the organization or can help in generating the organization re

Describe the duties of the financial manager in a business firm? Financial managers calculate the firm's performance, define what the financial consequences will be if the firm

Differences between Equity Finance and Preference Dissimilarity between Equity Finance and Preference are as follows:   Ordinary share capital