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

Risk adjusted discounting rate – methods of computing cost, Risk Adjusted D...

Risk Adjusted Discounting Rate - Methods of Computing Cost of Capital This method is used to establish the discounting rate to be used for a provided project. The cost of capi

Calculate the profit and segment of the organization, Food and Beverages ...

Food and Beverages Rooms, Restaurants and Other Services Other Income Total $ $ $ Sale

A. michael spence, A. Michael Spence An American economist who was awar...

A. Michael Spence An American economist who was awarded by the Nobel Memorial Prize in Economic Sciences. Spence is a lecturer of management at Stanford University in the Gradu

Stock exchange market, Stock Exchange Market The Idea and improvemen...

Stock Exchange Market The Idea and improvement of a Stock Exchange Stock exchange also identified as stock markets are special "market places" whereas already held bond

Calculate the beta which measure risk, Stone Container is a major producer ...

Stone Container is a major producer of cardboard boxes. Stone Container has $10M in outstanding equity. In addition, it has $2M in outstanding debt. The debt is a ten-yearmortgage

Calculate return on common equity, At the end of the fiscal year ending Jun...

At the end of the fiscal year ending June 30, 2003, Microsoft reported common equity of $64.9 billion on its balance sheet, with $49.0 billion invested in financial assets (in the

Explain the term- order, Explain the term- Order Brokers receive num...

Explain the term- Order Brokers receive numerous different types of buying and selling orders from their customers. Brokerage orders very as to the price at which order may

Financial structure or dividend policies, Every time a listed company does...

Every time a listed company does a share buyback, investors and media alike would debate fiercely on the merits of such a scheme. There are investors who prefer buybacks to high

Functions of capital markets, Functions of Capital Markets Functions o...

Functions of Capital Markets Functions of Capital Markets are as: 1. Providing long term funds that are essential for investment decisions. 2. Provide advices to investo

Present value concept - discounted cash flow techniques, Present Value Conc...

Present Value Concept - Discounted Cash Flow Techniques This perception acknowledges the fact which a shilling losses value along with time and as that if it is to be compared

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