Calculate operating leverage of tax rate, Finance Basics

Assignment Help:

A firm has sales of Rs. 10,00,000. Variable cost is 70%, total cost is Rs.9,00,000 and Debt of Rs. 5,00,000 at 10% rate of interest. If tax rate is 40% calculate:                                                                                    

(a)   Operating Leverage

(b)   Financial Leverage

(c)    Combined Leverage

(d)   If the firm wants to double up its EBIT, how much of a raise in sales would be needed on a % basis?

 


Related Discussions:- Calculate operating leverage of tax rate

Explain the operations of indian stock market, Explain the Operations of In...

Explain the Operations of Indian Stock Market. Meaning of Stock Exchange: Stock exchange means an organized market where securities issued by government organizations, compan

Joint stock companies - types of business organisations, Joint Stock Compan...

Joint Stock Companies - Types of Business Organisations Initiators contribute to the capital support of those companies via the purchase of shares of those companies. These co

Comparison a competing firm-analysts earnings estimates, Comparison to a Co...

Comparison to a Competing Firm In Mergent Horizon, return to the competitor page, but now enter the list of competitors "As Defined by the Company."  From this list select a f

T accounts, Accounting Exercise AVM 386 Fall 2014 Misty Mark, an infamous ...

Accounting Exercise AVM 386 Fall 2014 Misty Mark, an infamous archer, decided to open an archery business called Bows and Biceps. The following is a list of transactions for Bows

Development of lease finance in middle asia, Development of Lease Finance i...

Development of Lease Finance in Middle Asia Reasons Why Lease Finance Is Not Well Developed In Middle Asia 1. Lease charges are generally prohibitive that is the cost

Insurance, new features of insurance?

new features of insurance?

Stock exchange in india, give an introduction about stock exchage in india...

give an introduction about stock exchage in india,,includig BSE

State the determinants of return, State the Determinants of Return T...

State the Determinants of Return Three major determinants of the rate of return expected by investor are: (i) Time preference risk-free real rate. (ii) Expected rate o

Define meaning of investment, Define Meaning of Investment Meanin...

Define Meaning of Investment Meaning of Investment: Investment involves making of a sacrifice in the present with hope of deriving future advantages. Investment has many

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd