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Calculate financial leverage

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Reference no: EM133170590

Question - A company which has EBIT of 6,00,000 has the following capital structure:

10% Debentures 12 lakhs

12% Preference capital 4 lakhs

Equity capital of 100 each 8 lakhs

The company is in 30% tax bracket. Calculate Financial leverage.

Reference no: EM133170590

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