Find out operating leverage, Finance Basics

Assignment Help:

(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

 

 


Related Discussions:- Find out operating leverage

Disadvantage of joint stock companies, Disadvantage of Joint Stock Companie...

Disadvantage of Joint Stock Companies Difficult to reconstruct the capital Many formalities in forming the company Heavy initial capital outlay. Loss of secrec

Cash flow statement, how to calculate cash flow? What components are requir...

how to calculate cash flow? What components are required to calculate it ?

Types of jobbers in stock market, Types of jobbers in Stock Market The...

Types of jobbers in Stock Market There are three kinds of jobbers as: a) Bulls A jobber buys shares while prices are down and hold them in anticipation such t

Cost of retained earnings common equity, Clemson Software is considering a ...

Clemson Software is considering a new project whose data are shown below. The required equipment has a 3-year tax life, after which it will be worthless, and it will be depreciate

Define the term contractual savings depository institutions, Define the ter...

Define the term contractual savings depository institutions. Contractual savings institutions: Contractual savings institutions obtain funds at periodic intervals onto a

Tom and Martha Holt Case Study., Which of the following retirement plan alt...

Which of the following retirement plan alternatives would allow Tom the greatest deductible contribution while providing him with only a small cash flow commitment each year based

Cash and bonus issue - dividend, Cash and Bonus Issue - Dividend For a...

Cash and Bonus Issue - Dividend For a firm to pay cash dividends, it should contain adequate liquid funds.Though, under conditions of liquidity and financial constraints, a fi

Calculate the weighted average cost of capital, Company XYZ stock is consid...

Company XYZ stock is considering the two new projects, Project A and Project B. The two projects have similar risk characteristics as the existing business. The managers forecast t

Real Estate - Mortgage Prequalification, Bob and Jackie came to your bank s...

Bob and Jackie came to your bank seeking an FHA mortgage. They want to know how large a mortgage they would be qualified for and what the terms would be. Bob is a pastry chef (

Common Stock Valuation, Bates, inc. pays a dividend of $1.25 and is current...

Bates, inc. pays a dividend of $1.25 and is currently selling for $36.95. If investors require a 12% return on their investment, what growth rate would Bates Inc. have to provide t

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