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

#question.component.of working capital

Explain Mechanics of security trading in Stock Exchange Introduction: An investor should have some knowledge of how the securities markets operate. Marketing of old or new se

Executive Share Options Plans In a share option format, selected staff can be provided a number of share alternatives, each of which that provides the holder the right after a

Define benefit plan for the employee participants

Capital Market Authority (CMA) Was established in 1990 with an Act of Parliament to assist, in creation of a conducive environment, for growth and development of capital marke

Question: a) An oil well now produces 75000 barrels per year. The well will produce for 21 years more, but production will decline by 3.7% per year. Oil prices however, will in

The Morris Corporation has $ 600,000 of debt outstanding, and it pays an interest rate of 8% annually. Morris’s annual sales are $# million, its average tax rate is 40% and its net

Interest Rate Levels and Stock Prices Interest rates contain two effects on corporate profits: a) Since interest rate is a cost, and like the higher the rate of interest the

Bell is considering two marketing options for the Canadian launch of their internet-based video streaming service in the first quarter of 2012.   i. A  "soft" launch using prima