Question
1. Calculate degree of Operating Leverage, Financial Leverage and Combined Leverage from the following data: Sales is 100000 units at Rs. 2 per unit ,
1. Calculate degree of Operating Leverage, Financial Leverage and Combined Leverage from the following data: Sales is 100000 units at Rs. 2 per unit , Variable Cost per unit at Rs. 0.70, Fixed Cost: Rs. 100000, Interest Charges: Rs. 3668.
2.Comment on the operating and financial risk of the firm.
(3 Marks for Calculation and 2 Marks for Comment)
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
